RERC Regulations 28Chapter III · Financial principles for computing costs and return

Section 28 · Interest charges on working capital

- Rate of interest on working capital to be computed as provided subsequently in these Regulations shall be on normative basis and shall be equal to the short-term Prime Lending Rate of State Bank of India as on April 1 of the relevant year. The interest on working capital shall be computed on normative basis notwithstanding that the transmission or distribution licensee or the generating company has not taken working capital loan from any outside agency. The variation in normative working capital interest and actual working capital interest shall be considered as part of gain/loss on account of controllable factors.

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