All About Renewables

Chhattisgarh MSW Tariff Regulations - 2016

HIGHLIGHTS

Tariff Period	20 years from the date of commercial operation.
Control Period	April 1, 2016 – March 31, 2021
Useful Life of a Plant	20 years.
Net Tariff	Not available
Capital Cost	Technology	Capital Cost (Rs.lakhs/MW)*
	MSW to energy	1575
	RDF to energy	945
	*Capital costs are for FY 2016-17 and shall be reviewed annually.
Operation and Maintenance Expenses (O&M)	Technology	O&M Expenses (Rs lakhs/MW)*
	MSW to energy	94.5
	RDF to energy	56.5
	*O&M expenses are for FY 2016-17 Escalation in O&M is at the rate of 5.72% per annum.
Interest Rate on Loans	Average base rate of State Bank of India prevalent on October 1st of the previous year plus 300 basis points.
Depreciation	5.83% - for first 12 years of the tariff period. Remaining depreciation shall be spread over residual useful life of the project from 13thyear onwards.
Return on Equity	20% per annum – for first 10 years. 24% per annum from 11thyear onwards.
Interest on Working Capital	Base rate of State Bank of India prevalent on 1st October of the previous year plus 350 basis points.

OTHER PROVISIONS

Tariff structure and design	Generic, levellised, single part tariff for the tariff period.
Merit Order Despatch Principle	‘Must run’ power plants and thereby not subject to scheduling and merit order dispatch principles.
Subsidy or/and Incentives by central or state government	Any incentive or subsidy provided by the central or state government, including accelerated depreciation benefit, would be taken into consideration for determination of project specific tariff. Generation based incentives over and above tariff shall not be considered for tariff determination.
Rebate	2% - for payment through letter of credit. 1% - for payments not through letter of credit but within 1 month from the date of presentation of bills.
Late payment surcharge	1.25% per month for payment of bills beyond 60 days from the date of billing.
Links	http://cserc.gov.in/regulations.php?r_type=Notified
References	http://cserc.gov.in/admin/upload_regulation/060817_105300_.pdf

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