(1) For the purpose of determination of tariff, loan tenure of 12 years, inclusive of moratorium period, if any, shall be considered:
Provided that the capital subsidy admissible to the renewable energy generator shall normally be considered for the reduction of loan period and such reduced loan tenure shall be considered for the purpose of tariff determination.
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(2) Interest Rate-
(a) The loan arrived at in the manner indicated in regulation 22 shall be considered as gross normative loan for calculation for interest on loan. The normative loan outstanding as on April 1 st of every financial year shall be worked out by deducting the cumulative repayment, inclusive of the prepayment, upto March 31 st of the previous financial year from the gross normative loan on normative basis.
(b) For the purpose of computation of tariff, the Average of State Bank of India Base rate(s) prevalent during a period of 6 months preceding the date of commencement of these Regulations, plus 300 basis points shall be considered as the normative interest rate:
1 [Provided that where tariff is to be determined on financial year basis, in the control period, the Average Base Rate(s) of the State Bank of India (SBI) prevalent during the first six months of the previous year plus 300 basis points, shall be considered as the normative interest rate.]
(c) Notwithstanding any moratorium period availed by the renewable energy generator, the repayment of loan shall be considered from the first year of the tariff period and shall be equal to the annual depreciation allowed.
(d) The loan repayment for a financial year or the relevant part period thereof shall be considered to have been done in the middle of that financial year or the relevant part period thereof, as the case may be.