Section 11(1) in Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Hydro Generation Tariff) Regulations, 2011
(1)Capital cost for a project shall include-(a)the expenditure incurred or projected to be incurred, including interest during construction and financing charges, any gain or loss on account of foreign exchange risk variation during construction on the loan - (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, - up to the date of commercial operation of the project, as admitted by the Commission, after prudence check;(b)capitalised initial spares subject to the ceiling norms as per regulation 12;(c)additional capital expenditure determined under regulation 13:Provided that the assets forming part of the project, but not in use, shall be taken out of the capital cost.
