Section 62 in The Maharashtra Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2005
62. Loan repayment schedule.
- 62.1 The repayment schedule for all approved loans of the Distribution Licensee as at March 31, 2005 shall be in accordance with the loan agreements:Provided that where any new loan (or additional tranche of existing loan) is taken on or after April 1, 2005 in respect of an approved capital expenditure project commenced (but not commissioned) prior to April 1, 2005, then any such loan taken till the date of commissioning of the project shall be treated as an existing loan for the purpose of recovery of interest expense under these Regulations.62.2The loan capital calculated using the normative debt:equity ratio under Regulation 61 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.62.3Where the actual amount of loan repayment in any financial year exceeds the amount of depreciation allowable under Regulation 63.4.1, the Distribution Licensee shall be allowed an advance against depreciation for the difference between the actual amount of such repayment and the allowable depreciation for such financial year:Provided that the advance against depreciation shall be restricted to 1/10th of the principal amount of loans that are to be repaid in such financial year minus the amount of allowable depreciation under Regulation 63.4.1:Provided also that the amount of loan repayment, calculated in accordance with Regulation 62.1 and Regulation 62.2 above shall be assumed to be increased by the amount of such advance against depreciation allowed to the Distribution Licensee: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 Distribution Licensee and the resulting depreciable value shall be spread over the balance useful life of the fixed asset.
