Section 32 in The Maharashtra Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2005
32. Loan repayment schedule.
- 32.1 The repayment schedule for the loan capital of existing generating stations calculated under Regulation 31.1 above shall be in accordance with the loan agreements.32.2The loan capital calculated using the normative debt:equity ratio under Regulation 31.2, Regulation 31.3 and Regulation 31.4 above shall be assumed to be repaid each year based on a normative repayment schedule:Provided that the amount of such normative repayment for a year shall be equal to the amount of depreciation on the fixed asset to which such loan relates:Provided further that where the outstanding normative loan balance is less than the amount of normative loan repayment calculated as above, the repayment shall be assumed to be equal to the outstanding normative loan balance and no further amount shall be permitted on account of such loan:Provided also that all normative repayments are assumed to be made on September 30th of each financial year.32.3Where, in respect of a generating station, the actual amount of loan repayment in any financial year exceeds the amount of depreciation allowable under Regulation 34.4.1, the Generating Company shall be allowed an advance against depreciation for the difference between the actual amount of such repayment and the allowable depreciation in respect of such generating station, for such financial year:Provided also that such advance against depreciation shall be restricted to 1/10th of the principal amount of loans minus the amount of depreciation allowable under Regulation 34.4.1:Provided also that the amount of loan repayment, calculated in accordance with Regulation 32.1 and Regulation 32.2 above shall be assumed to be increased by the amount of such advance against depreciation availed by the Generating Company:Provided also that upon repayment of the entire loan amount, the original cost of the fixed asset shall be reduced by the aggregate of accumulated depreciation and advance against depreciation availed by the Generating Company and the resulting depreciable value shall be spread over the balance useful life of the fixed asset.
