Section 5(3) in Telangana Electricity Supply Undertakings (Acquisition) Act, 1954
(3)Basis C. - The compensation payable under this basis shall be the aggregate value of the amounts specified below:-(i)the book value of all completed works in benificial use pertaining to the undertaking and handed over to the Government (excluding works paid for by consumers) less depreciation calculated in accordance with Schedule II;(ii)the book value of all works in progress handed over to the Government excluding works paid for by consumers or prospective consumers;(iii)the book value of all stores including spare parts pertaining to and usable in the undertaking handed over to the Government and in the case of used stores and spare parts, such sum as may be decided upon by mutual agreement between the Government and the licensee;(iv)the book value of all other fixed assets in use on the vesting date and handed over to the Government less depreciation calculated in accordance with Schedule II;(v)the book value of all plant and equipment existing on the vesting date but no longer in use owing to wear and tear or to obsolescence, to the extent such value has not been written off in the books of the licensee less depreciation calculated in accordance with Schedule II;(vi)the book value of all intangible assets to the extent such value has not been written off in the books of the licensee;(vii)the amount due from consumers in respect of every hire-purchase agreement referred to in section 6 (2) (a) (ii) less a sum which bears to the difference between the total amount of the instalments and the original cost of the material or equipment, the same proportion as the amount due bears to the total amount of the instalments;(viii)any amount paid actually by the licensee in respect of every contract referred to in section 6(2)(a)(iii); and(ix)an additional sum by way of solatium-(a)in case the licensee is a person licensed under Part II of the Electricity Act, at the rate specified in the licence in respect of compulsory purchase, or where no rate is specified in the licence, at fifteen per cent on the values referred to in sub-clauses (i) and (v) at the rate of ten per cent on the value referred to in sub-clause (ii) and at the rate of five per cent on the value referred to in sub clause (iii);(b)in case the licensee is a person who has obtained sanction under section 28 of that Act to engage in the business of supplying electrical energy, at the rate of ten per cent on the values referred to in sub-clauses (i) and (v) and at the rate of five per cent on the values referred to in sub-clauses (ii) and (iii).Explanation. - (1) For the purposes of Basis C, the book value of any fixed asset means its original cost, and shall comprise-(i)the purchase price paid by the licensee for the asset, including the cost of delivery and all charges properly incurred in erecting and bringing the asset into beneficial use as shown in the books of the undertaking;(ii)interest charges on capital expenditure incurred from borrowed money and shown in the books of the undertaking as properly attributable to the asset up to the date of bringing it into beneficial use at a rate not exceeding six per cent per annum; and(iii)cost of supervision actually incurred, but not exceeding fifteen per cent of the amount referred to in paragraph (i).
