CSERC Regulations 6Chapter 2 · Application and Procedure for determination of fees and Charges and Sldc Development Fund
Section 6 · Capital Cost
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(1)
Capital cost for SLDC shall include the expenditure incurred or projected to be incurred during the control period, including Interest during Construction (IDC) financing charges, any gain or loss on account of Foreign Exchange Rate Variation (FERV) during construction, and Incidental Expenditure during Construction (IEDC) in line with the CAPEX plan :Provided that the value of the assets not in use shall not form part of capital cost.(2)
The capital cost admitted by the Commission after prudence check shall form the basis for determination of charges :Provided that prudence check may include scrutiny of the reasonableness of the capital expenditure, financing plan, IDC, IEDC, use of efficient technology, cost overrun, time over-run, and such other matters and may be considered appropriate by the Commission :Provided further that the capital cost appearing in the books of accounts of SLDC as on the date of transfer along with the approved CAPEX plan for the control period shall be the basis for determination of charges.Your private note on this section
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