(1) Unless otherwise specified by the Commission, the every licensee shall obtain prior approval of the Commission for making investment in the licensed business if such investment is above the limits laid down by the Commission in the licence conditions.
(2) The limits in the licence conditions may be modified by the Commission from time to time by a general or special order.
(3) In the application for investment approval, the licensee shall furnish the following information or particulars:-
(a) a detailed project report containing examination of an economic, technical system and environmental aspects of the investment together with the outline of the works to be undertaken, the salient features and particulars demonstrating the need for investment;
(b) the project cost together with the cost benefit analysis;
1 Ins. vide Not. No. HPERC/151/2007 dated 1 st August, 2008, published in the R.H.P dated 2 nd August, 2008 at p. 3021-3022.
(c) whether the investment is in a new project or for expansion or up-gradation of an existing system;
(d) sanctions and statutory clearances required for execution of the project and status of such sanctions and statutory clearances;
(e) phasing of investment over the financial years and commissioning schedule;
(f) the manner and the timeframe in which investments will be capitalized for the purposes of inclusion in the revenue requirement of the licensee;
(g) constraints which the licensee may face in making the investments or in implementing the project including constraints on the information available;
(h) resource mobilization and financial plans for meeting the investment; and
(i) such other particulars as the Commission may from time to time direct.
(4) (a) The Commission may at its discretion hold such inquires and consultations as the Commission may consider appropriate while dealing with the application for approval of the investment to be made by the licensee.
(b) The Commission may, at its discretion, initiate a proceeding or consider the application for investment approval as a part of the proceedings for determination of tariff or alongwith any other proceedings as the Commission may consider appropriate.
(5) (a) The Commission shall be entitled to appoint consultants, investigators, experts and others as the Commission may consider appropriate and authorize the Commission’s staff, consultants, investigators and experts to hold discussions and deliberations with the licensees before the Commission considers the application for investment approval.
(b) The cost of consultancies, investigations and reports as per this sub-regulation shall be borne by the licensee.
(6) (a) The licensee and other applicants seeking investment approval shall furnish information, particulars and documents as may be required by the Commission staff, consultants, investigators and experts appointed by the Commission for the purpose and allow them access to the records and documents in the power, possession or custody of the licensee.
(b) The licensee shall cooperate with the Commission’s staff, consultants, investigators and experts to enable them to discharge their functions and to submit a report to the Commission on the outcome of their findings.
(7) The Commission shall take into consideration, while determining the tariffs of the licensees as per this regulation and as per the Tariff Regulations framed by the Commission under section 61 of the Act, the approval granted by the Commission to the licensees for the investments under this regulation and the action and inaction on the part of the licensees in complying with the terms contained in this regulation.
CHAPTER –VIII PERFORMANCE STANDARDS, SUPPLY CODES REGULATIONS ETC.