Section 12 in Central Electricity Regulatory Commission (Fees and Charges of Regional Load Despatch Centre and other related matters) Regulations, 2019
12. Prudence Check of Capital Expenditure.
- The principles adopted for prudence check of capital cost shall be reasonableness of capital cost, financing plan, interest during construction, use of efficient technology, upgradability/ scalability of the technology and systems to accommodate the growing requirement of system operation, cost over-run and time over-run, procurement of equipment and materials through competitive bidding and such other matters as may be considered appropriate by the Commission for determination of fees and charges:Provided that, while carrying out the prudence check, the Commission shall also examine whether the RLDCs or NLDC, as the case may be, has been careful in its judgments and decisions in execution of the project.
