Section 48 in Jammu and Kashmir State Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2013
48. Capital Cost Indexation Mechanism.
- The following indexation mechanism shall be applicable in case of non-fossil fuel based cogeneration projects for adjustments in capital cost with the changes in Wholesale Price Index for Steel and Electrical Machinery,CC(n) = P&M(n)* (1+F1+F2+F3)P&M(n) = P&M(0) * (1+d(n))d(n) = [a*{(SI(n-1)/SI(0))- 1} + b*{(EI(n-1)/EI(0)) - 1}]/(a+b)Where,CC (n) = Capital Cost for nth yearP&M (n) = Plant and Machinery Cost for nth yearP&M (0) = Plant and Machinery Cost for the base yearNote: P&M (0) is to be computed by dividing the base capital cost (for the first year of the control period) by (1+F1+F2+F3)d (n) = Capital Cost escalation factor for year (n) of Control PeriodSI (n-1) = Average WPI Steel Index prevalent for fiscal year (n-1) of the Control PeriodSI (0) = Average WPI Steel Index prevalent for calendar year (0) at the beginning of the Control Period i.e. April 2012 to March 2013EI (n-1) = Average WPI Electrical Machinery Index prevalent for calendar year (n-1) of the Control PeriodEI (0) = Average WPI Electrical and Machinery Index prevalent for calendar year (0) at the beginning of the Control Period i.e. April 2012 to March 2013a = Constant to be determined by Commission from time to time, (In default it is 0.7), for weightages to Steel Indexb = Constant to be determined by Commission from time to time, (In default it is 0.3), for weightages to Electrical Machinery IndexF1 = Factor for Land and Civil Work (0.10)F2 = Factor for Erection and Commissioning (0.09)F3 = Factor for IDC and Financing Cost (0.14)
