Section 9(6) in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014
(6)The following shall be excluded or removed from the capital cost of the existing and new project:(a)The assets forming part of the project, but not in use;(b)Decapitalisation of Asset;(c)In case of hydro generating station any expenditure incurred or committed to be incurred by a project developer for getting the project site allotted by the State government by following a two stage transparent process of bidding; and(d)the proportionate cost of land which is being used for generating power from generating station based on renewable energy:Provided that any grant received from the Central or State Government or any statutory body or authority for the execution of the project which does not carry any liability of repayment shall be excluded from the Capital Cost for the purpose of computation of interest on loan, return on equity and depreciation;
