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Section 11: Interest on loans

JSERC (terms & conditions for distribution tariff) regulation 2004State Regulations of Jharkhand · 2003

11.1 Interest on loan capital shall be computed loan­ wise on the actual outstanding loans duly taking into account the schedule of repayment and actual interest rate.

11.2 Normative Loan will be equal to the loan and amount of equity in excess of thirty percent (30%) invested into the project provided that the total of actual loans, equity and the normative loan shall not exceed the cost of the project.

11.3 In case of the existing distribution licensee, the normative loan shall be the opening normative loan after taking into account repayments worked out on normative basis. The weighted average rate of interest on loan shall be worked out on the actual 'outstandinq loan and applied to the normative loan for calculation of Interest on loan in the respective year.

i 2. lnterest on Vvoril:ing Capiiai.-12.1 init~r1::sl on working capiiai that is roqulred to meet the shortfall in collection over and above the target approved by U1e Commission, shall be allowed. ·

12.2. Rate of interest on working capital shall be the short-term Prime Lendina Rate of State Bank of India as on tst April of the year for which the tariff is determined. · ·

13. Interest on Consumer security deposits.'-.13.1 Interest on Consumer nocurity deposits shall be equivalent to the bank rate or more, as may be specified lly the Commission from time to time.

Where this provision sits

ActJSERC (terms & conditions for distribution tariff) regulation 2004
Section11
Marginal noteInterest on loans
JurisdictionState of Jharkhand
StatusIn force as published by the source

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