Section 25(2) in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019
(2)In case of replacement of assets deployed under the original scope of the existing project after cut-off date, the additional capitalization may be admitted by the Commission, after making necessary adjustments in the gross fixed assets and the cumulative depreciation, subject to prudence check on the following grounds:(a)The useful life of the assets is not commensurate with the useful life of the project and such assets have been fully depreciated in accordance with the provisions of these regulations;(b)The replacement of the asset or equipment is necessary on account of change in law or Force Majeure conditions;(c)The replacement of such asset or equipment is necessary on account of obsolescence of technology; and(d)The replacement of such asset or equipment has otherwise been allowed by the Commission.
