BERC Regulations 22Chapter 2 · Financial Principles

Section 22 · Subsidy or incentive by the Central/State Government

- The Commission shall take into consideration any incentive or subsidy offered by the Central or State Government, including accelerated depreciation benefit if availed by the generating company, for the solar energy power plants while determining the tariff under these Regulations:Provided that the following principles shall be considered for ascertaining income tax benefit on account of accelerated depreciation, if availed, for the purpose of tariff determination:

(i)

Assessment of benefit shall be based on normative capital cost, accelerated depreciation rate as per relevant provisions under Income Tax Act and corporate income tax rate.

(ii)

Capitalisation of Solar projects during second half of the fiscal year. Per unit benefit shall be derived on levellised basis at discount factor equivalent to weighted average cost of capital.

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