Section 16(1) in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014
(1)In case of coal-based/lignite fired thermal generating station, the generating company, instead of availing R&M may opt to avail a 'special allowance' in accordance with the norms specified in this regulation, as compensation for meeting the requirement of expenses including renovation and modernisation beyond the useful life of the generating station or a unit thereof, and in such an event, revision of the capital cost shall not be allowed and the applicable operational norms shall not be relaxed but the special allowance shall be included in the annual fixed cost:Provided that such option shall not be available for a generating station or unit for which renovation and modernization has been undertaken and the expenditure has been admitted by the Commission before commencement of these regulations, or for a generating station or unit which is in a depleted condition or operating under relaxed operational and performance norms.
