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State of Rajasthan - Section

Section 85 in Rajasthan Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2009

85. Tariff Indexing Mechanism for Wind Energy Projects.

(1)Under Generic Tariff determination mechanism, automatic tariff revision through Tariff Indexation Mechanism as outlined below, shall be allowed by the Commission for wind energy projects to be commissioned during the Control Period. The parameters for indexation shall be 'normative capital cost' and long term PLR of State Bank of India. Under these Regulations, the Commission has specified 'normative capital cost for the base year of Control Period and corresponding Tariff to be applicable for the projects to be commissioned in Base Year of Control Period. The 'Tariff' for wind Projects for commissioning during each subsequent year of control period shall be indexed as per formula outlined under these Regulations.
(b)In case of Wind Energy projects, the following Indexing Mechanism for adjustment of tariff with the change in Wholesale Price Index for Cement and Steel, and change in long term prime lending rate (LTPLR) be applicable as under:
Tn = T1 * (1 + dn) + [0.08 * [LTPLRn - LTPLRo] ]dn = [a * (SIn-1/SI0 - 1) + b * (CIn-1/CI0 - 1)]/ (a+b)Where,
T1 = Base levellised Tariff determined for the WEG projectscommissioned in first year of the Control Period (i.e. FY2009-10)(in Rs/kWh).
Tn = Levellised Tariff to be applicable for WEG projectscommissioned during the financial year (n) of the Control Period(in Rs/kWh).
dn = Capital cost escalation factor applicable for year (n) of theControl Period
a = Constant to be determined by Commission from time to time, (indefault it is 0.70) for weightage to Steel Index
SIn-1 = Average WPI Steel index prevalent for calendar year (n-1) ofthe Control Period
SI0 = Average WPI Steel Index prevalent for Calendar year (0) i.e.Jan-2008 to Dec-2008
b = Constant to be determined by Commission, (in default it is0.30) for weightage to Cement Index
CIn-1 = Average WPI Cement Index prevalent for fiscal year (n-1) ofthe Control Period
CI0 = Average WPI Cement Index prevalent for Calendar year (0) i.e.Jan-2008 to Dec-2008.
LTPLRn = Long term prime lending rate (in %) of State Bank of India asprevalent as on 31st January of each calender year prior to nthyear of the Control Period.
LTPLR0 = Long term prime lending rate (in %) of State Bank of India asprevalent as on 31st January 2009.
Note. - (a) Since there will be a lag of one year within which the power plant can be commissioned, prices for the calendar year "n-1" is relevant and may be applied to the tariff of year "n".Thus, for projects commissioned after FY 2009-10 the applicable tariff be indexed on the price information available for the period 1/1/2008 to 31/12/2008 as base with indexing mechanism considering FY 2010-11 as Year n and corresponding calendar year year n-1 shall be 1.01.2009 to 31.12.2009 for pricing. (b) The indexation linked to interest rate is 8 paise/kWh per percentage point change in long term prime lending rate of State Bank of India.