CSERC Regulations 14Chapter 3 · Computation of Annual Charges

Section 14 · Depreciation

(1)

The value base for the purpose of depreciation shall be the capital cost of the asset admitted by the Commission.

(2)

The salvage value of the asset (excluding IT equipments and Software's) shall be considered as 10% and depreciation shall be allowed up to maximum of 90% of the capital cost of the asset. The salvage value for IT equipments and Software's shall be considered as NIL and 100% value of the assets shall be considered depreciable.

(3)

Land shall not be a depreciable asset and its cost shall be excluded from the capital cost while computing depreciable value of the capital cost of the asset.

(4)

Depreciation shall be calculated annually based on Straight Line Method and at rates specified in Appendix-I to these regulations for the assets of the SLDC. The depreciation rates as specified by Central Commission from time to time will be made applicable.

(5)

Assets fully depreciated shall be shown separately.

(6)

Value of the assets not in use or declared obsolete shall be taken out from the capital cost for the purpose of calculation of depreciation.

(7)

The balance depreciable value as on the date of transfer shall be worked out by deducting the cumulative depreciation from the gross depreciable value of the assets appearing in the books of accounts of the CSPSOC for the SLDC as on the date of transfer.

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