(1) The amount to be given to a company, the undertaking of which vests in the Government under this Act, shall be determined and paid in the manner hereinafter provided.
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(2) The amount to be given shall be the aggregate value of the sums specified below:-
(i) the book value of all completed works in beneficial use pertaining to the undertaking and handed over to the Government (excluding works paid for by consumers) less depreciation calculated in the manner specified in the Schedule;
(ii) the book value of all works in progress handed over to the Government, excluding works paid for by consumers or prospective consumers;
(iii) the book value of all stores including spare parts handed over to the Government and in the case of used stores and spare parts, such sum as may be decided upon by mutual agreement between the Government and the companies;
(iv) the book value of all other fixed assets in use on the vesting date and handed over to the Government less depreciation calculated in the manner specified in the Schedule;
(v) the book value of all plant and equipment existing on the vesting date but no longer in use owing to wear and tear or to obsolescence, to the extent such value has not been written off in the books of the company less depreciation calculated in the manner specified in the Schedule;
(vi) the book value of all intangible assets to the extent such value has not been written off in the books of the companies;
(vii) the sum due from consumers in respect of every hire-purchase agreement referred to in section 6 (1) (ii) less a sum which bears to the difference between the total sum of the instalments and the original cost of the material or equipment, the same proportion as the sum due bears to the total sum of the instalments;
(viii) any sum paid actually by the company in respect of every contract referred to in section 6 (1) (iii).
1[(ix) a sum equal to ten percent of the aggregate of the amounts specified in clauses (i) to (vi), in consideration of the compulsory nature of acquisition;]1
1. Inserted by Act 14 of 1981 w.e.f. 07.04.1981.
Explanation.- (a) For the purposes of this sub-section the book value of any fixed asset means its original cost, and shall comprise,-
(i) the purchase price paid by the company for the asset, including the cost of delivery and all charges properly incurred in erecting and bringing the asset into beneficial use as shown in the books of the undertaking;
(ii) interest charges on capital expenditure incurred from borrowed money and shown in the books of the undertaking as properly attributable to the asset up to the date of bringing it into beneficial use, at a rate not exceeding six percent per annum;
(iii) cost of supervision actually incurred, but not exceeding fifteen percent of the sum referred to in paragraph (i).
(b) Where any asset was acquired after the expiry of the period to which the latest annual account relates, or where no annual account has to be rendered under the Electricity Act, the book value of the asset shall be such sum as may be decided upon by the Government after giving an opportunity of being heard to the companies.
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(3) The amount to be given according to sub-section (2) less the amounts to be deducted therefrom as provided in this Act shall be the amount due and shall carry interest at the rate of five percent per annum from the vesting date.
(4) The amount due may, subject to rules made in this behalf, be paid in full or in instalments not exceeding five or in bonds, negotiable or non-negotiable carrying interest at the rate specified in sub-section (3) and of guaranteed face value maturing within a specified period not exceeding ten years.