Section 21 in Central Electricity Regulatory Commission (Fees and Charges of Regional Load Despatch Centre and other related matters) Regulations, 2019
21. Depreciation.
(1)The value base for the purpose of depreciation shall be the capital cost of the assets admitted by the Commission.(2)The salvage value of the asset (excluding IT equipment and Software) shall be considered as 10% and depreciation shall be allowed up to maximum of 90% of the capital cost of the asset. The salvage value for IT equipment and software shall be considered as NIL and 100% value of the assets shall be considered as depreciable.(3)Land shall not be a depreciable asset and its cost shall be excluded from the capital cost while computing depreciable value of the capital cost of the asset.(4)Depreciation shall be calculated annually based on Straight Line Method and at rates specified in Appendix-III to these regulations for the assets of the Regional Load Despatch Centre.(5)Assets fully depreciated shall be shown separately.(6)Value of the assets not in use or declared obsolete shall be taken out from the capital cost for the purpose of calculation of depreciation.(7)The balance depreciable value as on 1.4.2019 shall be worked out by deducting the cumulative depreciation from the gross depreciable value of the assets appearing in the books of accounts of the Power System Operation Corporation Limited for the respective Regional Load Despatch Centre and National Load Despatch Centre.(8)In case of de-capitalization of assets in respect of concerned RLDC, the cumulative depreciation shall be adjusted by taking into account the depreciation recovered in tariff by the de-capitalized asset during its useful life.
