1671A

MINISTRY OF ENERGY

(Department of Power)

NOTIFICATION

New Delhi, the 4th November, 1981

G. S. R. No. 5774(E)....In exercise of the powers con-

ferred by Sub-paragraph (a) of paragraph VI of the Sixth Sche-

dule to the Electricity (Supply) Act, 1948 (54 of 1948), the Central

Government, after consultation with the Authority, herehv

notifies that the licensee shall provide for depreciation such

sum as is calculated in accordance with the following principle-,,

namely:—

]. Providing of depreciation by licensees—(a) The licensee

shall provide for depreciaticn.

(i) such an amount as wou'd, if set aside annually through-

out the prescribed period and accumulated ;'t compound

interest at 4 per cent per annum, nroduce hy tne end of

ths prescribed period an amount equal to ninety per

cent of the original cost of th'.' a'-set after tj?;ing into

account the sums already wi itten off or set aside in ihc

books of the undertaking. Annual interest on (he

accumulated balance will be allowed as an e.-.pense from

revenue as well as the annual incremental deposit,

(ii) such an amount as is arrived at by dividing ninety per

cent of the original cost of the asset by the prescribed

period.

Provided however, that if a licensee has already

opted for a particular method before the commence-

ment of the Electricity (Supply) Amendment Act, 1978

(23 of 1978), he shall continue to follow the same

method.

(b) Where any fixed asset ceases to be available for use

through obsolescence, inadequacy, superfluity or for any other

reason, it shall be described in the books of the licensee as no

1 onger in use ana no further depreciation in respect thereof shall

be allowed as a charge against revenue.

the undertaking to 10 per cent or less of its original cost, no

further depreciation shall be allowed in respect of that asset,

(d) Arrears of depreciation may be written otf by equate.!

payments over the remainder of the prescribed period.

2. Period of application of the principles of depreciation—

These principles shall apply to the charging of depreciation for

the accounting years commencing on the 1st day of April, 1980

1981 and ending on the 31st dav of March. 1981 and 19.S2 res-

pectively.

Explanation:—In

this notification

"pi escribed

period"

means—in respect of assets specified in the Schedule to this

notification, the number of years or piriod specified therein,

in relation to such asset running in e.tcii cisc from the beginning

of the year of dccou.il next fclioi.'.'i.g that in wiiich the parti-

cular asset became available for use in the Business.

SCHEDULE.

Description of asset

A. Land owned under full title

B. Land held under lease- -

(a) for investment in the land.

(b) for cost of clearing site

Assets purchased new- -

(a) Plant and machinery in ge-

nerating stations, including

plant foundations—

(i) hydro-electric

(ii) steam-clcctnc

(iii) dicsel-elcv-trie

(b) Cooli.ij! foer-. and circula-

ting Water SVStCil.S

part of a hydroelectric

system, including—

(i) dams, spiiways, \,cirs,

canals, reinforced con-

crete Humes and syp-

phons

(ii) reinforced

concrete

pipe-line and surge tan-

ks,

steel

pipe-lines,

sluice gates, steel surge

tanks, hydraulic cont-

rol valves and other

hydraulic works.

«d) Buildings aad civil engi-

neering works of a perma-

nent character, not men-

tioned above—

(i) offices and showrooms

(ii) containing

thermo-

electric

generating plant.

(iii) containing

hydro-

electric generating plant

Civ) temporary erection such

as wooden structures

(v) roads other than kuccha

roads

(vi)

others

(e) Transformers, transformer

kiosks, sub-station equip-

ment and other fixed app;

Number of years

period

infinity

The period of the lease,

or the period remain-

ing uncxpired on the

assignment

the

lease.

The period of the lease

remaining

uncxpired

at the date of clearing

the site.

Thirty-tiye

Twenty-five

Fifteen

Thirtv

One hundred

Forty-

Fifty

Thirty

Thirty-five

Five

One hundred

Fifty

1672A

THL GAZF ITE Of INDIA : EXTRAORDINARY

LPARJ" II— SEC. 3(i)J

Description of :mei

ralus (including plant foun-

dations)

(i) transformers (inclu-

ding foundations) hav-

ing a rating of 100 kilo-

volt amperes and over

fit) others

(f) Switchgcar, including cable

connection¹*.

fff) Lighting arrestors -

(i) Station typo

(li) pole type

(lii) synchronous condene-

sers

(g) Batteries

(h) (1) Underground

Cable

including joint boxes and

dis-connccting boxes.

(2) Cable duct system

(i) Overhead lines, including

supports—

(\) tines on fabricated steel

supports operating at

nominal voltages high-

er than 66 kilovolts,

(ii) lines on steel supports

operating at nominal

voltages, higher than

13.2 kilovolts but not

exceeding 66 kilovoh.%.

(iii) lines on steel or rein-

forced concrete supp-

01 ts.

(iv) lines on treated wood

supports.

Number of years or

period

Thirty-five

Twenty-five

Twenty

Fifteen

Thirty-five

Ten

Forty

Sixty

Thirty-five

Thirty

Twenty-five

Twenty

Description

nf a-.su

()) Metres

fk) self-propelled vehicle-.

(1)

Static machine Tools

(m) Air conditioning plant

(i) Static

(iil Portable

(n) (i) Office furniture

and

fittings,

(ii) Office equipment

(iii) internal wiring, inclu-

ding fittings and appa-

ratus,

(iv) Street-light fittings

Co) Apparatus let on hire -

(i) other than motors

(ii) motors

(p) Communication equipment

(i) Radio and high fre-

quency carrier system

(ii) Telephone lines and

telephones.

Assets purchased second hand

and assets not otherwise provi-

ded for in this Schedule

Number of

y\.ars or period

Fifteen

Seven

Twcn i>

Fifteen

Seven

Twenty

Ten

Fifteen

Seven

Twenty

Fifteen

Twenty

Such reasonable period

as the State

Govern-

ment

determines

each ciso having re-

gard to the nature, age

and condition of the

assot at the time of its

acquisition by the owner

TF. No. 9/:t/79-D. l/ESB.]

S. R A MESH, Jt. Secy.

PRINTED BY THE MANAGER, OOVT. OF INDI.V PRESS, RINO ROAD, NEW DELHI-H0064

AN'} l-UBLlSHED BY THE CONTROLLER PI¹ PUBLICATIONS, DELHI-110054, 1981