BERC Regulations 14Chapter 2 · Financial Principles

Section 14 · Loan and Finance Charges

(1)

Loan Tenure. For the purpose of determination of tariff, loan tenure of 10 years shall be considered.

(2)

Interest Rate -

(a)

The loans arrived at in the manner indicated above shall be considered as gross normative loan for calculation for interest on loan. The normative loan outstanding as on 1st April of every year shall be worked out by deducting the cumulative repayment up to 31st March of previous year from the gross normative loan.

(b)

For the purpose of computation of tariff, the normative interest rate shall be considered as average long term prime lending rate (LTPLR) of State Bank of India (SBI) prevalent during the previous year plus 150 basis points. In case of change of SBI Policy as regard LTPLR the Commission may Suo Motu amend this rate of basis points over and above the bank interest rate.

(c)

Notwithstanding any moratorium period availed by the generating company, the repayment of loan shall be considered from the first year of commercial operation of the project and shall be equal to the annual depreciation allowed.

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