Section 16 in Central Electricity Regulatory Commission (Fees and Charges of Regional Load Despatch Centre and other related matters) Regulations, 2019
16. Debt-Equity Ratio.
(1)The actual debt - equity ratio as admitted by the Commission for the period ending 31.3.2019 shall be considered for the opening capital cost of the Regional Load Despatch Centres and National Load Despatch Centre for the next control period:(2)The capital expenditure incurred prior to 1.4.2019, where debt-equity ratio has not been determined by the Commission for determination of annual charges of RLDC for the period ending 31.3.2019, the Commission shall determine the debt: equity ratio in accordance with Regulation 11(3) of the Central Electricity Regulatory Commission (Fees and Charges for Regional Load Despatch Centres and other related matters) Regulations 2015:(3)For the capital expenditure incurred or projected to be incurred on or after 1.4.2019, the debt-equity ratio shall be considered as 70:30. If the equity actually deployed is more than 30% of the capital cost, equity in excess of 30% shall be treated as normative loan:Provided that:i. Where equity actually deployed is less than 30% of the capital cost, actual equity shall be considered for determination of Return on Equity;ii. the equity invested in foreign currency shall be designated in Indian rupees on the date of each investment;iii. Any grant, other than LDC development Fund obtained for the execution of the project shall not be considered as a part of capital structure for the purpose of debt - equity ratio.Explanation. - The premium, if any, raised by the Power System Operation Corporation Limited while issuing share capital and investment of internal resources created out of its free reserve, for the funding of the project, shall be reckoned as paid up capital for the purpose of computing return on equity, only if such premium amount and internal resources are actually utilized for meeting the capital expenditure of the RLDC.Chapter-5 Fees and Charges Structure
