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Section 18: Working Capital

The Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Hydro Generation Tariff) Regulations, 2011State Regulations of Himachal Pradesh · 2003

The Commission shall calculate the working capital requirement for hydro electric power stations containing the following components: -

(a) Operation & Maintenance (O&M) expenses for 1 month;

(b) maintenance spares equivalent to 15% of O&M specified in regulations;

(c) receivables equivalent to two months of fixed cost.

2 [19. Interest on Working Capital.—Rate of interest on working capital to be computed as provided hereinafter in these regulations shall be on normative basis and shall be equal one (1) Year State Bank of India (SBI) MCLR / any replacement thereof as notified by RBI for the time being in effect applicable for one (1) Year period, as may be applicable as on 1 st April of the Financial Year in which the Petition is filed plus 300 basis points. The interest on working capital shall be payable on normative basis notwithstanding that the generating company has not taken working capital loan from any outside agency or has exceeded the working capital loan based on the normative figures.]

1 Sub. vide Not. No. HPERC-F(1)-2/2018 dated 22 nd November, 2018 published in the R.H.P.

27 th November, 2018 at p. 6249-6255. Before its substitution it read as under:

“(5) The generating station shall make every effort to refinance the loan as long as it results in net benefit to the beneficiaries. The costs associated with such refinancing shall be borne by the beneficiaries and any benefit on account of refinancing of loan and interest on loan shall be passed on to the beneficiaries. Refinancing may also include restructuring of debt.” 2 Sub. vide Not. No. HPERC-F(1)-2/2018 dated 22 nd November, 2018 published in the R.H.P. 27 th November, 2018 at p. 6249-6255. Before its substitution it read as under:

“19. Interest on Working Capital .- Rate of interest on working capital shall be on normative basis and shall be equal to the 2[average Base Rate of State Bank of India for the last six months prior to the filing of the MYT petition plus 350 basis points]. The interest on working capital shall be payable on normative basis notwithstanding that the generating station has not taken working capital loan from any outside agency or has exceeded the working capital loan based on the normative figures.” Compendium of HPERC Regulations, March 2021 17

Where this provision sits

ActThe Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Hydro Generation Tariff) Regulations, 2011
Section18
Marginal noteWorking Capital
JurisdictionState of Himachal Pradesh
StatusIn force as published by the source

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