BERC Regulations 13Chapter 2 · Financial Principles

Section 13 · Debt Equity Ratio

(1)

For generic tariff to be determined based on suo motu petition, the debt equity ratio shall be 70 : 30.

(2)

For Project specific tariff, the following provisions shall apply:-If the equity actually deployed is more than 30 Percent of the capital cost, equity in excess of 30% shall be treated as normative loan:Provided that where equity actually deployed is less than 30 Percent of the capital cost, the actual equity shall be considered for determination of tariff:Provided further that the equity invested in foreign currency shall be designated in Indian rupees on the date of each investment.

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