Section 19(5) in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019
(5)The following shall be excluded from the capital cost of the existing and new projects:(a)The assets forming part of the project, but not in use, as declared in the tariff petition;(b)De-capitalised Assets after the date of commercial operation on account of replacement or removal on account of obsolescence or shifting from one project to another project:Provided that in case replacement of transmission asset is recommended by Regional Power Committee, such asset shall be de-capitalised only after its redeployment;Provided further that unless shifting of an asset from one project to another is of permanent nature, there shall be no de-capitalization of the concerned assets.(c)In case of hydro generating stations, any expenditure incurred or committed to be incurred by a project developer for getting the project site allotted by the State Government by following a transparent process;(d)Proportionate cost of land of the existing project which is being used for generating power from generating station based on renewable energy; and(e)Any grant received from the Central or State Government or any statutory body or authority for the execution of the project which does not carry any liability of repayment.
