Section 19(2) in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019
(2)The Capital Cost of a new project shall include the following:(a)The expenditure incurred or projected to be incurred up to the date of commercial operation of the project;(b)Interest during construction and financing charges, on the loans (i) being equal to 70% of the funds deployed, in the event of the actual equity in excess of 30% of the funds deployed, by treating the excess equity as normative loan, or (ii) being equal to the actual amount of loan in the event of the actual equity less than 30% of the funds deployed;(c)Any gain or loss on account of foreign exchange risk variation pertaining to the loan amount availed during the construction period;(d)Interest during construction and incidental expenditure during construction as computed in accordance with these regulations;(e)Capitalised initial spares subject to the ceiling rates in accordance with these regulations;(f)Expenditure on account of additional capitalization and de-capitalisation determined in accordance with these regulations;(g)Adjustment of revenue due to sale of infirm power in excess of fuel cost prior to the date of commercial operation as specified under Regulation 7 of these regulations;(h)Adjustment of revenue earned by the transmission licensee by using the assets before the date of commercial operation;(i)Capital expenditure on account of ash disposal and utilization including handling and transportation facility;(j)Capital expenditure incurred towards railway infrastructure and its augmentation for transportation of coal upto the receiving end of the generating station but does not include the transportation cost and any other appurtenant cost paid to the railway;(k)Capital expenditure on account of biomass handling equipment and facilities, for co-firing;(l)Capital expenditure on account of emission control system necessary to meet the revised emission standards and sewage treatment plant;(m)Expenditure on account of fulfilment of any conditions for obtaining environment clearance for the project;(n)Expenditure on account of change in law and force majeure events; and(o)Capital cost incurred or projected to be incurred by a thermal generating station, on account of implementation of the norms under Perform, Achieve and Trade (PAT) scheme of Government of India shall be considered by the Commission subject to sharing of benefits accrued under the PAT scheme with the beneficiaries.
