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Section 26: Interest on working capital (1) The working capital requirement in respect of wind energy projects, small hydro power, solar PV and solar thermal projects shall be computed in accordance with the following

The Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions…State Regulations of Himachal Pradesh · 2003

(a) operation and maintenance expenses for one month;

(b) receivables equivalent to 2 (two) months of energy charges for sale of electricity calculated on the net saleable energy corresponding to the CUF considered for tariff determination on normative basis;

(c) maintenance spare @ 15% of operation and maintenance expenses.

(2) The working capital in respect of biomas power and non-fossil fuel based cogeneration projects shall be computed in accordance with the following.-

(a) fuel cost for four months equivalent to normative PLF.

(b) operation and maintenance expenses for one month;

(c) receivables equivalent to 2 (two) months of energy charges for sale of electricity calculated on the net saleable design energy on normative basis;

(d) maintenance spare @ 15% of operation and maintenance expenses.

(3) In case of the renewable technologies not covered in sub-regulations (1) and (2), the Commission may adopt such norms, as it may consider appropriate, at the time of determination of tariff.

(4) Interest on working capital shall be the interest rate equivalent to average of SBI Base Rate (s) prevalent during the period of 6 months preceding the date of commencement of these Regulations, plus 350 basis points.

1 [Provided that in cases 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 350 basis points, shall be considered as the normative interest rate.]

Where this provision sits

ActThe Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2012
Section26
Marginal noteInterest on working capital (1) The working capital requirement in respect of wind energy projects, small hydro power, solar PV and solar thermal projects shall be computed in accordance with the following
JurisdictionState of Himachal Pradesh
StatusIn force as published by the source

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