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30. The Commission also allows the petitioner to claim expenditure towards IDC, taxes & duties, FERV (if any) and expenditure towards project management & engineering services at actuals after commissioning of the FGD system, which may be allowed after prudence check. As regards pre-operative expenses, the cost may be allowed subject to proper justification for such expense and after prudence check by the Commission......................................

83. The in-principle approval that the appellant seeks based on the CRC regulations is merely an in-principle approval for incurring such expenditure. The quantum of the additional Action is subject to prudence check.

84. There is no difference between the central regulation and the state regulation as regards the in-principle approval as both sets of regulation requires a prudence check only after the expenditure has been incurred.

85. In the instances, where the generators approached the Central Commission for grant of in-principle approval for additional capitalisation, on account of change in law, the Central Commission has granted the same but the cost has been approved on provisional basis and the same is subject to prudence check by the Central Commission after the expenditure has been incurred.

128. The Respondent No. 2 has further submitted that there is no difference between the central regulation and the state regulation as regards the in-principle approval as both sets of regulation require a prudence check only after the expenditure has been incurred. The Central Commission has granted the in-principle approval but the cost has been approved on provisional basis and the same is subject to prudence check by Central Commission after the expenditure has been incurred.

The Respondent No. 2 has submitted that the in-principle approval sought by the appellant based on the Central regulation is merely an in-principle approval for incurring such expenditure. The quantum of expenditure is subject to prudence check. As such there is no difference between the Central regulation and the state regulation.

152. Regarding the orders passed by the Central Commission granting the in-principle approval, the Respondent No. 2 has submitted that though the central commission has granted the in-principle approval but the same is on provisional basis and the same is subject to prudence check by the central commission after the expenditure has been incurred. The Appellant has submitted that he is also seeking in-principle approval based on CEA's recommendation with a view to enable the appellant to avail/deploy debt finance for installation of FGD system. Final pass through of cost in tariff can be determined by the State commission after the appellant has actually incurred such cost after prudence check.