Section 11 in Jharkhand State Electricity Regulatory Commission (Terms and Conditions for Distribution Tariff) Regulations, 2004
11. Interest on loans.
- 11.1 Interest on loan capital shall be computed loan-wise on the actual outstanding loans duly taking into account the schedule of repayment and actual interest rate.11.2Normative Loan will be equal to the loan and amount of equity in excess of thirty percent (30%) invested into the project provided that the total of actual loans, equity and the normative loan shall not exceed the cost of the project.11.3In case of the existing distribution licensee, the normative loan shall be the opening normative loan after taking into account repayments worked out on normative basis. The weighted average rate of interest on loan shall be worked out on the actual outstanding loan and applied to the normative loan for calculation of interest on loan in the respective year.
