Section 77(1) in Jammu and Kashmir State Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2013
(1)The following indexation mechanism shall be applicable in case of biogas based power projects for adjustment in capital cost over the Control Period with the changes in Wholesale Price Index for Steel and Electrical Machinery,CC(n) = P&M(n)* (1+F1+F2+F3)P&M(n) = P&M(0) * (1+d(n))d(n) = [a*{(SI(n-1)/SI(0))- 1} + b*{(EI(n-1)/EI(0)) - 1}]/(a+b)Where,CC (n) = Capital Cost for nth yearP&M (n) = Plant and Machinery Cost for nth yearP&M (0) = Plant and Machinery Cost for the base yearNote: P&M (0) is to be computed by dividing the base capital cost (for the first year of the control period) by (1+F1+F2+F3)d (n) = Capital Cost escalation factor for year (n) of Control PeriodSI (n-1) = Average WPI Steel Index prevalent for calendar year (n-1) of the Control PeriodSI (0) = Average WPI Steel Index prevalent for calendar year (0) at the beginning of the Control Period i.e. April 2012 to March 2013EI (n-1) = Average WPI Electrical Machinery Index prevalent for calendar year (n-1) of the Control PeriodEI(0) = Average WPI Electrical and Machinery Index prevalent for calendar year (0) at the beginning of the Control Period i.e. April 2012 to March 2013a = Constant to be determined by Commission from time to time, (In default it is 0.7), for weightages to Steel Indexb = Constant to be determined by Commission from time to time, (In default it is 0.3), for weightages to Electrical Machinery IndexF1 = Factor for Land and Civil Works (0.10)F2 = Factor for Erection and Commissioning (0.09)F3 = Factor for IDC and Financing Cost (0.14)
