Section 17 in Rajasthan Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2009
17. Debt-equity ratio.
- For the purpose of determination of tariff, debt-equity ratio on aggregate basis shall be 70:30 for existing generating stations, existing assets of transmission licensee and distribution licensees. For a new generating station, transmission licensee or distribution licensee, the debt-equity ratio shall be 70:30 for each generating station, transmission and distribution line or substation, commissioned or capacity expanded on and/or after 1.4.2009. Where equity employed is more than 30%, the amount of equity for the purpose of tariff shall be limited to 30% and the balance amount shall be considered as loan. Where actual equity employed is less than 30%, the actual equity shall be considered.
