CSERC Regulations 13Chapter 3 · Computation of Annual Charges

Section 13 · Interest on loan capital

(1)

The loans determined in accordance with Regulation 8 shall be considered as gross normative loan for calculation of interest on loan.

(2)

The normative loan outstanding as on beginning of first Financial Year of the Control Period shall be worked out by deducting the cumulative repayment as admitted by the Commission up to last day of the previous Financial Year in respect to the first Financial Year of the control period from the gross normative loan.

(3)

The repayment for respective year of the control period shall be deemed to be equal to the depreciation allowed for that year.

(4)

The rate of interest shall be the weighted average rate of interest calculated on the basis of the actual loan portfolio at the beginning of each year applicable to the SLDC/ CSPSOC :Provided that if there is no actual loan for a particular year but normative loan is still outstanding, the last available weighted rate of interest shall be considered :

(5)

The interest on loan shall be calculated on the normative loan of the year by applying the weighted average rate of interest.

(6)

The CSPSOC shall make every effort to re-finance the loan as long as it results in net savings on interest and in that event the costs associated with such refinancing shall be borne by the intra-State buyers and intra-State sellers and the net savings shall be shared between the intra-State buyers with intra-State sellers and the CSPSOC, as the case may be, in the ratio of 1:1. This provision shall be applicable only on those intra-State entities who are availing long-term services of SLDC.

(7)

The changes to the terms and conditions of the loans shall be reflected from the date of such re-financing.

(8)

In case of dispute, any of the parties may make an application in accordance with the Chhattisgarh State Electricity Regulatory Commission (Conduct of Business) Regulations, 2009, as amended from time to time, including statutory re-enactment thereof for settlement of the dispute:Provided that the intra-State entity shall not withhold any payment on account of the interest claimed by the intra-State buyers and intra-State sellers and the CSPSOC during the pendency of any dispute arising out of refinancing of loan.

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