Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

CHAPTER-I

SCOPE, EXTENT AND DEFINITIONS

A1. Short Title and Commencement

These Regulations shall be called the Jharkhand State Electricity Regulatory Commission (Terms and

Conditions for Determination of Generation Tariff) Regulations, 2025.

These Regulations shall come into force for the period from April 01, 2026 to March 31, 2031, after its

publication in the Official Gazette of the Government of Jharkhand and unless reviewed earlier

or extended by the Commission, shall remain in force upto March 31, 2031:

Provided that where a generating station or Unit thereof, has been declared under

commercial operation before the date of commencement of these Regulations and whose tariff

has not been finally determined by the Commission till that date, tariff in respect of such

generating station or Unit thereof for the period ending March 31, 2026 shall be determined in

accordance with the JSERC (Terms and Conditions for Determination of Generation Tariff)

Regulations, 2020, JSERC(Terms and Conditions for Determination of Generation Tariff)

Regulations, 2015, JSERC (Terms and Conditions for Determination of Generation Tariff)

Regulations, 2010, JSERC (Terms and Conditions of Tariff determination, Multi-Year Tariff

Framework) Regulations, 2007, and JSERC (Terms and Conditions for determination of

Thermal Generation Tariff) Regulations, 2004, read with all the amendments thereto, as the

case may be.

These Regulations shall extend to the whole of the State of Jharkhand.

These Regulations shall supersede the JSERC (Terms and Conditions for Determination of Generation

Tariff) Regulations, 2020, JSERC (Terms and Conditions for Determination of Generation

Tariff) Regulations, 2015, JSERC (Terms and Conditions for Determination of Generation

Tariff) Regulations, 2010, JSERC (Terms and Conditions of Tariff determination, Multi-Year

Tariff Framework) Regulations, 2007, and JSERC (Terms and Conditions for determination

of Thermal Generation Tariff) Regulations, 2004 read with all amendments thereto, as the

case may be.

Explanation:-For all purposes including the review matters pertaining to the period till FY

2025-26, i.e., up to March 31, 2026, the issue related to determination shall be governed by

JSERC (Terms and Conditions for Determination of Generation Tariff) Regulations, 2020,

JSERC (Terms and Conditions for Determination of Generation Tariff) Regulations, 2015,

JSERC (Terms and Conditions for Determination of Generation Tariff) Regulations, 2010,

JSERC (Terms and Conditions of Tariff determination, Multi Year Tariff Framework)

Regulations, 2007, JSERC (Terms and Conditions for determination of Thermal Generation

Tariff) Regulations, 2004 including amendment thereto, as may be applicable.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

A2. Scope of Regulations and Extent of Application

These Regulations shall apply in all cases where tariff for a generating station or a Unit thereof is

required to be determined by the Commission under Section 62 of the Act read with Section 86

thereof.

These Regulations shall not apply to the following cases:

Generating Stations whose tariff has been discovered through tariff based competitive

bidding in accordance with the guidelines issued by the Central Government

and adopted by the Commission under Section 63 of the Act;

Generating Stations based on renewable sources of energy.

A3. Definitions and Interpretations

In these Regulations, unless the context otherwise requires: -

‘Accounting Statement’ means for each Financial Year:

(i)

The Balance Sheet, prepared in accordance with the form contained in The Companies

Act, 2013 and its predecessors, as applicable;

(ii) Cash Flow Statement, prepared in accordance with the applicable Accounting Standards

of the Institute of Chartered Accountants of India;

(iii) Cost Accounting Records prescribed by the Central Government under Section 148 of

the Companies Act, 2013 and its predecessors, as applicable.

(iv) Notes on accounts thereto, and such other supporting statements and information forming

part of financial statements or as the Commission may direct from time to time.

(v)

Profit and Loss Account, complying with the requirements contained in The Companies

Act, 2013 and its predecessors, as applicable;

(vi) Report of the Statutory Auditors, including any annexure and appendix thereto, as

applicable;

(vii) Any or all the formats as notified by the Commission under these Regulations for Tariff

determination including Multi Year Tariff Regulations pertinent to the relevant year.

(viii) Reconciliation Statement, duly certified by the Statutory Auditors, showing the

reconciliation between the total expenses, revenue, assets and liabilities, of the entity as a

Company and the expenses, revenue, assets and liabilities,separately for each Business

regulated by the Commission and unregulated business operations.

2. ‘Act’ means the Electricity Act, 2003 (36 of 2003) and subsequent amendments thereof;

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

3. ‘Additional Capitalisation’ means the capital expenditure incurred and capitalised or

projected to be capitalised, after the date of commercial operation of the project and admitted

by the Commission after prudence check, subject to provisions of Clause0 to Clause 0of these

Regulations;

4. ‘Aggregate Revenue Requirement’ or ‘ARR’ means application for each Financial Year, the

costs pertaining to the Generating Company, which are admissible, in accordance with these

Regulations, to be recovered in the form of tariffs and charges determined by the Commission;

5. ‘Applicant’ means a Generating Company who has filed the Petition fordetermination of tariff

or a Petition for truing up or annual performance review in accordance with the Act and these

Regulations and includes a Generating Company whose tariff is the subject of review by the

Commission;

6. ‘Auxiliary Energy Consumption’ or ‘Aux’ in relation to a period in case of a generating

station means the quantum of energy consumed by auxiliary equipment of the generating

station, such as the equipment being used for the purpose of operating plant and machinery

including switchyard of the generating station and transformer losses within the generating

station, expressed as a percentage of the sum of gross energy generated at the generator

terminals of all the Units of the generating station:

Provided that auxiliary energy consumption shall not include energy consumed for

supply of power to housing colony and other facilities at the generating station and the power

consumed for construction works at the generating station and integrated coal mine:

Provided further that auxiliary energy consumption for compliance of revised emission

standards, sewage treatment plant and external coal handling plant (jetty and associated

infrastructure shall be considered separately;

7. ‘Auditor’ means an auditor appointed by the Generating Company, in accordance with the

provisions of the Companies Act, 2013, as amended from time to time, or any other law for the

time being in force;

8. ‘Bank Rate’ means the one-year Marginal Cost of Lending Rate (MCLR) of the State Bank of

India from time to time or any replacement thereof for the time being in effect;

9. ‘Base Year’ means the Financial Year 2025-26 and used for the purposes of these

Regulations;

10. ‘Beneficiary’in relation to a generating station covered under clauses (a) or (b) of sub-section

1 of Section 86 of the Act, means a Distribution Licensee who is purchasing electricity

generated at such generating station by entering into a Power Purchase Agreement either

directly or through a Trading Licensee on payment of appropriate charges:

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Provided that where the Distribution Licensee is procuring power through a Trading

Licensee, the arrangement shall be secured by the Trading Licensee through back-to-back

Power Purchase Agreement and Power Sale Agreement;

11. ‘Block’ in relation to a combined cycle thermal generating station includes combustion

turbine-generator, associated waste heat recovery boiler, connected steam turbine-generator

and auxiliaries;

12. ‘Capital

cost’

means

the

capital

cost

determined

accordance

with

Section A13of these Regulations;

13. ‘Carrying Cost’ means the interest amount on gap/ surplus and it will be SBI MCLR rate plus

200 basis points;

14. ‘CERC’ or ‘Central Commission’ means the Central Electricity Regulatory Commission;

15. ‘Change in Law’ means occurrence of any of the following events: -

i. the enactment, bringing into effect or promulgation of any new Indian Law; or

ii. adoption, amendment, modification, repeal or re-enactment of any existing Indian law; or

iii. change in interpretation or application of any Indian law by a competent court, Tribunal or

Indian Governmental Instrumentality, which is the final authority under law for such

interpretation or application; or

iv. change by any competent statutory authority in any condition or covenant of any consent,

clearances or approval or licence available or obtained for the project; or

v. coming into force or change in any bilateral or multilateral agreement/treaty between the

Government of India and any other Sovereign Government having implication for the

generating station regulated under these regulations;

16. ‘Commission’ means the Jharkhand State Electricity Regulatory Commission (JSERC);

17. ‘Conduct of Business Regulations’ means the JSERC (Conduct of Business) Regulations,

2024, as amended from time to time;

18. ‘Control

Period’ means a multi-year period fixed by the Commission, from

April 01, 2026 and up to March 31, 2031;

19. ‘Cut-off Date’ means March 31, of the year closing after two years of the year of commercial

operation of the project, and in case the project is declared under commercial operation in the

last quarter of financial year, the cut-off date shall be March 31, of the year closing after three

years of the year of commercial operation:

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Provided that the cut-off date may be extended by the Commission if it is proved on the

basis of documentary evidence that the capitalization could not be made within the cut-off date

for reasons beyond the control of the Generating Company;

20. ‘Date of Commercial Operation’ or ‘COD’ in respect of a thermal generating station or

hydro generating station or transmission system shall have the same meaning as defined in the

Grid Code, as amended from time to time

21. Day’ means the 24-hour period starting at 00:00 hour;

22. ‘Declared Capacity’ or ‘DC’ in relation to a generating station means, the capability to

deliver ex-bus electricity in MW declared by such generating station in relation to any time-

block of the day or whole of the day, duly taking into account the availability of fuel or water,

and subject to further qualification in the relevant Regulation;

23. ‘De-capitalization’ for the purpose of the tariff under these Regulations, means reduction in

Gross Fixed Assets of the project corresponding to the assets taken out of service;

24. ‘De-commissioning’ means removal from service of a generating station or a Unit thereof,

after it is certified by the Central Electricity Authority or any other authorized agency, either

on its own or on an application made by the project developer or the beneficiaries or both, that

the project cannot be operated due to non-performance of the assets on account of

technological obsolescence or uneconomic operation or a combination of these factors;

25. ‘Design Energy’ means the quantum of energy, which can be generated in a 90% dependable

year with 95% installed capacity of the hydro generating station;

26. ‘Expenditure Incurred’ means the fund, whether equity or debt or both, actually deployed

and paid in cash or cash equivalent, for creation or acquisition of a useful asset and does not

include commitments or liabilities for which no payment has been released;

27. ‘Existing generating station’ means a generating station declared under commercial operation

on a date prior to April 01, 2026;

28. Extended Life’ means the life of a generating station or Unit thereof beyond the period of

useful life, as may be determined by the Commission on case-to-case basis;

29. ‘Financial Year’ means a period commencing on April 01, of a calendar year and ending on

March 31, of the subsequent calendar year;

30. ‘Force Majeure Event ’means, with respect to any party, any event or circumstance, or

combination of events or circumstances, which is not within the reasonable control of, and is

not due to an act of omission or commission of that party and which, by the exercise of

reasonable care and diligence, could not have been prevented; and, without limiting the

generality of the foregoing, shall include the following events or circumstances:

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

(i)

acts of God, including but not limited to lightning, storm, action of the elements,

earthquakes, flood, torrential rains, drought and natural disaster or any act of God

beyond the control of any party or due to any restraint of the State Government or

Central Government or any other Statutory Authority;

(ii)

strikes and industrial disturbances having a State-wide or extensive impact in the area of

supply of a Generating Company, but excluding strikes and industrial disturbances in

the Generating Company’s own organisation;

(iii) acts of war, invasion, armed conflict or act of foreign enemy, insurrections, riots,

revolution, terrorist or military action;

(iv) unavoidable accident, including but not limited to fire, explosion, radioactive

contamination and toxic chemical contamination;

31. ‘Fuel Supply Agreement’ means the agreement executed between the generating company

and the fuel supplier for the generation and supply of electricity to the beneficiaries;

32. ‘GCV as Received’ means the GCV of coal as measured at the unloading point of the thermal

generating station through collection, preparation and testing of samples from the loaded

wagons, trucks, ropeways, Merry-Go-Round (MGR), belt conveyors and ships in accordance

with the IS 436 (Part-1/ Section 1)- 1964:

Provided that the measurement of coal shall be carried out through sampling by third

party to be appointed by the generating companies in accordance with the guidelines, if any,

issued by Central/State Government:

Provided further that samples of coal shall be collected either manually or through

hydraulic augur or through any other method considered suitable keeping in view the safety of

personnel and equipment:

Provided also that the generating companies may adopt any advance technology for

collection, preparation and testing of samples for measurement of GCV in a fair and

transparent manner;

33. ‘Generating Company’ means any Company or body corporate or association or body of

individuals, whether incorporated or not, or artificial juridical person, which owns or operates

or maintains a generating station(s);

34. ‘Generating Station’ shall have the same meaning as defined under sub-Section 30 of Section

2 of the Act and for the purpose of these Regulations shall also include stages or blocks or

Units of a generating station;

35. ‘Grid Code’ means the JSERC (State Grid Code) Regulations, 2008, as amended or replaced

from time to time;

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

36. ‘Gross Calorific Value’ or ‘GCV’ in relation to a thermal generating station means the heat

produced in kCal by complete combustion of one kilogram of solid fuel or one litre of liquid

fuel or one standard cubic meter of gaseous fuel, as the case may be;

37. ‘Gross Station Heat Rate’ or ‘SHR’ means the heat energy input in kCal required to generate

one kWh of electrical energy at generator terminals of a thermal generating station;

38. ‘Income from Other Business’ is the income received by the Generating Company other than

from Tariff towards usage of assets and/or manpower relating to regulated Business and shall

exclude Non-Tariff Income;

39. ‘Infirm Power’ means electricity injected into the grid prior to the commercial operation of a

Unit or block of the generating station;

40. ‘Installed Capacity’ or ‘IC’ means the summation of the name plate capacities of all the

Units of the generating station or the capacity of the generating station (reckoned at the

generator terminals), approved by the Commission from time to time;

41. ‘kCal’ shall mean a unit of heat energy contents in mineral, measured in one kilo calories or

one thousand calories of heat produced at any instantaneous period;

42. ‘Kilowatt-Hour’ or ‘kWh’ shall mean a unit of electrical energy, measured in one kilowatt or

one thousand watts of power produced or consumed over a period of one hour;

43. ‘Landed Fuel Cost’ shall mean the total cost of coal (including biomass in case of co-firing),

lignite or the gas delivered at the unloading point of the generating station and shall include the

base price or input price, washery charges wherever applicable, transportation cost (overseas or

inland or both) and handling cost, charges for third party sampling and applicable statutory

charges;

44. ‘Licence’ means a Licence granted under Section14 of the Act;

45. ‘Maximum Continuous Rating’ or ‘MCR’ in relation to a Unit of the thermal generating

station means the maximum continuous output at the generator terminals, guaranteed by the

manufacturer at rated parameters, and in relation to a block of a combined cycle thermal

generating station means the maximum continuous output at the generator terminals,

guaranteed by the manufacturer with water/steam injection (if applicable) and corrected to 50

Hz grid frequency and specified site conditions;

46. ‘Multi-year tariff (MYT) framework means a regulatory system where tariffs are set for a

specific period, typically three to five years, instead of being determined year-to-year;

47. ‘New Project’ shall mean the generating station or unit thereof achieving its commercial

operation on or after April 01, 2026;

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48. ‘Non-Tariff Income’ means net income relating to the regulated business other than from

Tariff, including but not limited to profit derived from sale of scrap, rent of land or buildings,

income from investments, miscellaneous receipts, etc.;

49. ‘Normative Annual Plant Availability Factor’ or ‘NAPAF’ in relation to a generating

station

means

the

availability

factor

specified

Clause0and

Clause 0 of these Regulations for thermal generating station and in Clause0 and Clause 0 of

these Regulations for hydro generating station;

50. ‘Normative Annual Plant Load Factor’ or ‘NAPLF’ in relation to a generating station

means the Plant Load Factor specified in Clause 0 and Clause 0 of these Regulations for

thermal generating station;

51. ‘Operation and Maintenance Expenses’ or ‘O&M expenses’ means the expenditure

incurred for operation and maintenance of the project, or part thereof, and includes the

expenditure on manpower, repairs and maintenance, spares, consumables, insurance and

overheads, and fuel other than used for generation of electricity;

52. ‘Original Project Cost’ means the capital expenditure incurred by the Generating Company,

within the original scope of the project up to the cut-off date as admitted by the Commission;

53. ‘Plant Availability Factor’ or ‘(PAF)’ in relation to a generating station for any period means

the average of the daily declared capacities (DCs) for all the days during that period expressed

as a percentage of the installed capacity in MW reduced by the normative auxiliary energy

consumption;

54. ‘Plant Load Factor’ or ‘(PLF)’ in relation to thermal generating station or Unit for a given

period means the total sent out energy corresponding to scheduled generation during the

period, expressed as a percentage of sent out energy corresponding to installed capacity in that

period and shall be computed in accordance with the following formula:

PLF (%)= 100xΣSGi/{N x IC x (l-Auxn)} %

i=1

Where,

IC=Installed Capacity of the generating station or Unit in MW;

SGi=Scheduled Generation in MW for the i^thtime block in such period;

N=Number of time blocks during the period;

Auxn=Normative

Auxiliary

Energy

Consumption

percentage of

gross

energy generation;

55. ‘Project’ means:

i. in case of thermal generating station, all components of the thermal generating station

and includes integrated coal mine, biomass pellet handling system, pollution control

system, effluent treatment plan, as may be required;

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ii. in case of hydro generating station, all components of the hydro generating station and

includes dam, intake water conductor system, power generating station, as apportioned

to power generation;

56. ‘Prudence Check’ means scrutiny of reasonableness of any cost or expenditure incurred or

proposed to be incurred in accordance with these Regulations by the Generating Company;

57. ‘Pumped Storage Hydro Generating Station’ means a hydro generating station, which

generates power through energy stored in the form of water energy, pumped from a lower

elevation reservoir to a higher elevation reservoir;

58. ‘Quarter’ shall mean the period of three months commencing on the first day of April, July,

October and January of each financial year in case of existing project, and in case of a new

project, in respect of the first quarter, from the date of commercial operation to the last day of

June, September, December or March, as the case may be;

59. ‘Run-of-river generating station’ means a hydro generating station, which does not have

upstream pondage;

60. ‘Run-of-river generating station with pondage’ means a hydro generating station with

sufficient pondage for meeting the diurnal variation of power demand;

61. ‘Scheduled Commercial Operation Date or SCOD’ shall mean the date(s) of commercial

operation of a generating station or generating Unit or block thereof or as indicated in the

Investment Approval or as agreed in Power Purchase Agreement, whichever is earlier;

62. ‘Scheduled Energy’ means the quantum of energy scheduled by the State Load Despatch

Centre to be injected into the grid by a generating station over a day;

63. ‘Scheduled Generation’ or ‘SG’ at any time or for any period or time-block means schedule

of generation in MW or MWh ex-bus, given by the State Load Despatch Centre;

64. ‘Small Gas Turbine Generating Station’ means and includes open cycle gas turbine or

combined cycle generating stations with gas turbines in the capacity range of 50 MW or below;

65. ‘State’ means the Jharkhand State;

66. ‘State Load Despatch Centre’ or ‘SLDC’ means the centre established by the State

Government for purposes of exercising the powers and discharging the functions under Section

31 of the Act;

67. ‘Statutory Charges’ comprises taxes, cess, duties, royalties and other charges levied through

Acts of the Parliament or State Legislatures or by Indian Government Instrumentality under

relevant statutes;

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68. ‘Storage type generating station’ means a hydro generating station associated with large

storage capacity to enable variation of generation of electricity according to demand;

69. ‘Tariff’ shall mean the schedule of charges for generation and bulk supply of electricity

together with terms and conditions applicable thereof;

70. ‘Tariff Period’ shall mean the period from April 01, 2026 and up to March 31, 2031 for which

Tariff is determined by the Commission under these Regulations;

71. ‘Thermal Generating Station’ shall mean a generating station or a unit thereof that generates

electricity using fossil fuels such as coal, lignite, gas, liquid fuel or combination of these as its

primary source of energy or co-firing of biomass with coal;

72. ‘Trial Run and Trial Operation’ Trial Run in relation to generating station or Unit thereof

shall mean the successful running of the generating station or Unit thereof at maximum

continuous rating or installed capacity for continuous period of 72 hours in case of Unit of a

thermal generating station or Unit thereof and 12 hours in case of a Unit of a hydro generating

station or Unit thereof:

Provided that where the beneficiaries have been tied up for purchasing power from the

generating station, the trial run shall commence after seven days’ notice by the Generating

Company to the beneficiaries and concerned RLDC or SLDC, as the case may be:

Provided further that the short interruptions, for a cumulative duration of 4 hours, shall

be permissible, with corresponding increase in the duration of the test. Cumulative

interruptions of more than 4 hours shall call for repeat of trial operations or trail run:

Provided also that the partial loading may be allowed with the condition that average

load during the duration of the trial run shall not be less than Maximum Continuous Rating or

the Installed Capacity or the Name Plate excluding period of interruption and partial loading

but including the corresponding extended period:

Provided also that the Units of thermal and hydro Generating Stations shall also

demonstrate capability to raise load upto 105% or 110% of its Maximum Continuous Rating or

the Installed Capacity or the Name Plate as the case may be;

73. ‘Unit’ in relation to a thermal generating station other than combined cycle thermal generating

station means steam generator, turbine-generator and auxiliaries, or in relation to a combined

cycle thermal generating station, means turbine-generator and auxiliaries; and in relation to a

hydro generating station means turbine-generator and its auxiliaries;

74. ‘Unloading Point’ shall mean the point within the premises of the coal or lignite based

thermal generating station where the coal or lignite is unloaded from the rake or truck or any

other mode of transport;

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75. ‘Useful life’ in relation to a Unit of a generating station from the date of commercial operation

shall mean the following, namely: -

i. Coal/Lignite based thermal generating station: 25years;

ii. Gas/Liquid fuel based thermal generating station:

25 years; and

iii. Hydro generating station including pumped storage hydro generating

stations:

40years.

Provided that the extension of life of the projects beyond the completion of their useful

life shall be decided by the Commission after prudence check based on the facts, details and

justifications presented before the Commission by the Generating Company or suo-motu on

case-to-case basis;

76. ‘Year’ means Financial Year;

77. ‘Zero Date’ means the date indicated in the Investment Approval for commencement of

implementation of the project and where no such date has been indicated, the date of

Investment Approval shall be deemed to be Zero Date;

The words and expressions used in these Regulations and not defined herein but defined in the Act

shall have the meanings respectively assigned to them in the Act.

Reference to any Act, Rules and Regulations shall include amendment or consolidation or re-

enactment thereof.

All proceedings under these Regulations shall be governed by the JSERC (Conduct of Business)

Regulations, 2024as amended or re-enacted from time to time.

A4. Norms of Operation to be Ceiling Norms

For removal of doubts, it is clarified that the norms of operation specified under these Regulations are

the ceiling norms and this shall not preclude the Generating Company and Beneficiaries from

agreeing to improved norms of operation and in such case the improved norms shall be

applicable for the determination of tariff:

Provided that if Power Purchase Agreement between Generating Company and the

Beneficiary stipulates better norms of operation then such norms provided in the Power Purchase

Agreement shall be considered for the determination of tariff.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

CHAPTER-II

Tariff framework and guiding principles

A5. Multi Year Tariff (MYT) Framework

The MYT Framework shall commence from April 01, 2026 and unless reviewed earlier or extended by

the Commission, shall be applicable till March 31, 2031. The ARR filings for the Control

Period shall be done in accordance with the MYT framework contained in these Regulations.

The Generating Company shall file MYT Application along with supporting documents before the

Commission as per the timelines specified in Section A39 of these Regulations.

The MYT Application shall include statements containing ARR along with its break up for the Years

of the previous Control Period based on Audited Accounts for FY 2020-21 to FY 2024-25,

revised estimates for Base Year FY 2025-26, and projections for each year of the Control

Period.

The Guiding Principles for MYT Framework are described in Section A6of these Regulations.

The principles for determination of ARR for the Control Period are described in Chapter III of these

Regulations and the procedure for annual filing during the Control Period is described in

Chapter VI of these Regulations.

A6. Guiding Principles for MYT Framework

The Commission shall adopt Multi Year Tariff Framework for approval of ARR and determination of

tariff. The ARR shall be determined for each year of the Control Period.

The Multi Year Tariff framework shall be based on the following: -

1. Business Plan of the Generating Station for the entire Control Period to be filed before the

Commission for approval, along with MYT Petition prior to the start of the Control Periodor

within such period as the Commission may direct;

2. Generating Company’s forecast of expected tariff for sale of power for each year of the

Control Period, based on reasonable assumptions of the underlying financial and operational

parameters laid down under these Regulations and on the basis of the Business Plan;

3. Trajectory for specific parameters, shall be prescribed by the Commission, for improvement

through incentives and disincentives;

4. Annual review of performance, which shall be conducted vis-à-vis the approved forecast and

categorization of variations in performance into controllable and uncontrollable factors; and

5. Mechanism for sharing approved gains or losses on account of controllable and

uncontrollable factors.

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Determination of Baseline

The values for the Base Year of the Control Period shall be determined on the basis of the audited

accounts available for FY 2020-21 to FY 2024-25. In the absence of audited accounts of any

such year, the Commission may consider audited accounts of last five financial years or best

estimate for such years after carrying out due, prudence check and after taking into account

other factors as considered relevant by the Commission.

The Commission shall normally not revise the performance targets during the Control Period, unless

the Commission is of the view that there is a major variation in approved numbers vis-à-vis

actuals.

II.

Business Plan

Each Generating Company shall file for the Commission’s approval a Business Plan approved by

anauthorized signatory,as per the timelines specified in Section A39of these Regulations.

The Business Plan shall be for the entire Control Period and shall inter-alia contain: -

a) Capital Investment Plan: The Generating Company shall submit the Capital Investment

Plan for the entire Control Period, detailing the investments planned by the Generating

Company along with the corresponding capitalisation schedule and financing plan. This Plan

shall also include capacity enhancement plan, if any, and proposed efficiency improvements

and its cost benefit analysis. It shall also submit plant-wise details of Capital Structure and

cost of Financing (interest on Debt) and return on equity, after considering the existing

market conditions, terms of the existing loan agreements, risk associated in generating

business and creditworthiness;

b) Operational Plan: A set of targets proposed for performance parameters such as Annual

Plant Availability Factor (PAF), Plant Load Factor (PLF), Gross Station Heat Rate (SHR),

Secondary Fuel Oil Consumption, Auxiliary Power Consumption (Aux)etc., and shall also

include Unit-wise Outage Plan;

c) Human Resource Plan: Human Resource Plan with manpower planning including details of

the estimated year wise manpower addition and retirements for the Control Period to run the

power plant efficiently and effectively;

d) Non-Tariff Income: Proposals for Non-Tariff Income with item-wise description and

details;

e) Income from Other Business: Proposals in respect of income from Other Business; and

Business Plan shall also contain the requisite information for the preceding Control Period:

Provided that requisite information for the preceding Control Period shall include year-

wise audited data on Scheme-wise capital investment, capacity enhancement plan, if any,

proposed efficiency improvements and its cost benefit analysis, quality improvement

measures undertaken, Employee Expenses, Repair &Maintenance Expenses and A&G

Expenses along with detailed break up and any other information used for preparing

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

projections of various performance parameters and other components during the Control

Period. In case of a new generating plant, such information is required to be submitted for

the period of operations up to the start of the Control Period.

III.

Capital Investment Plan

The Generating Company shall file for the Commission’s approval a Capital Investment Plan for the

entire Control Period along with the Business Plan. The Capital Investment Plan shall be

prepared scheme-wise and each scheme shall include: -

1. Purpose of investment;

2. Approval of Competent Authority;

3. Detailed Project Report;

4. Capital Structure;

5. Capitalisation Schedule;

6. Implementation schedule including timelines;

7. Cost-benefit analysis& Rate reasonability;

8. Improvement in operational efficiency envisaged in the Control Period;

9. On-going schemes that will spill over into next financial year under review along

with justification;

10. New schemes that will commence during the Control Period but may be completed

within or beyond the Control Period.

During the Annual Performance Review, the Commission shall monitor the year-wise progress of the

actual capital expenditure incurred by the Generating Company vis-à-vis the approved capital

expenditure. The Generating Company shall submit the actual capital expenditure incurred

along with the Annual Performance Review Filing.

The Commission shall review the actual capitalisation at the end of each year of the Control Period

vis-à-vis the approved capitalisation schedule and shall true up the ARR based on actual

capitalisation for the year for which True up has been filed and also revise the ARR

components for the year for which APR and Tariff have been sought.

In case the capital expenditure is required for emergency work, which has not been approved in the

Capital Investment Plan, the Generating Company shall submit an application containing all

relevant information along with reasons justifying emergency nature of the proposed work

seeking approval of the Commission:

Provided that in case the capital expenditure is required for emergency work or

unforeseen situation to mitigate threat to life and property and if prior intimation thereof to the

Commission shall cause any irreparable loss or injury, the Generating Company may

undertake such capital expenditure and submit the details for post-facto approval of the

Commission along with next Tariff Petition with all relevant details.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

IV.

Performance Parameters

The Commission has stipulated following performance parameters that are deemed to be controllable

in nature: -

a) Normative Annual Plant Availability Factor (NAPAF);

b) Station Heat Rate (SHR);

c) Auxiliary Energy Consumption (Aux);

d) Secondary Fuel Oil Consumption;

e) Transit Loss;

f) Operation &Maintenance Expenses (O&M Expense).

The variation from performance targets set for the controllable parameters as specified in Clause 0of

these Regulations shall be subject to incentive and penalty framework, as detailed in Clause 0

to Clause0of these Regulations.

Incentive and Penalty Framework

Any financial loss on account of underperformance with respect to the performance parameters as

specified in Clause0 of these Regulations will not be reviewed during the Control period and

is not recoverable through tariff. In case of any financial gain with respect to the performance

parameters as specified in Clause0, the gain shall be shared in the manner specified in Clause

Sharing of gains due to variation in norms: The Generating Company shall workout gains based

on the actual performance of applicable controllable parameters as under: -

a) Station Heat Rate;

b) Secondary Fuel Oil Consumption;

c) Auxiliary Energy Consumption; and

d) Operations and Maintenance Expenses.

The financial gains by the Generating Company, on account of above controllable parameters

shall be shared between the Generating Company and the beneficiaries on annual basis. The

financial gains on account of parameters (a) to (c) shall be computed as per the following

formula for a thermal generating station and shall be shared in the ratio of 50:50 between the

generating stations and beneficiaries;

Provided that for generating stations that have signed coal linkage agreement through

Shakti Scheme, sharing of gains in the ratio of 75:25 between the generating stations and

beneficiaries shall be applicable due to variation in normative controllable operational

parameters.

Net Gain = (ECRN -ECRA) x Scheduled Generation;

Where,

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

ECRN: Normative Energy Charge Rate computed on the basis of norms specified for Station

Heat Rate, Auxiliary Energy Consumption and Secondary Fuel Oil consumption.

ECRA: Actual Energy Charge Rate computed on the basis of actual Station Heat Rate, Auxiliary

Energy Consumption and Secondary Fuel Oil Consumption for the month:

Provided that in case of hydro generating stations, the net gain on account of Actual

Auxiliary Energy Consumption being less than the Normative Auxiliary Energy

Consumption, shall be computed as per following formulae provided the saleable scheduled

generation is more than the saleable design energy and shall be shared in the ratio of 50:50

between generating station and beneficiaries:

(i) When saleable scheduled generation is more than saleable design energy on the basis of

normative auxiliary energy consumption and less than or equal to saleable design energy

on the basis of actual auxiliary energy consumption:

Net gain (Million Rupees) = [(Saleable Scheduled generation in MUs) - (Saleable Design

energy on the basis of normative auxiliary energy consumption in MUs)] x [0.80 or ECR,

whichever is lower]

(ii) When saleable scheduled generation is more than saleable design energy on the basis of

actual auxiliary energy consumption:

Net gain (Million Rupees)= {Saleable Scheduled generation in MUs - [(Saleable Scheduled

Generation in MUs x (100% - normative AEC in %)/ (100% - actual AEC in %)]}x [0.80 or

ECR, whichever is lower]

The financial gains on account of Operations and Maintenance Expenses for thermal and hydro

stations shall be shared in the ratio of 50:50 between the generating stations and

beneficiaries at the time of truing up. Further, the gain shall be calculated on consolidated

basis for generating station having more than one unit provided the units concerned have the

same beneficiary.

The Commission shall also permit pass-through of variations in performance parameters on account

of Force Majeure events and due to Change in Law event(s) in the tariff, based on the

submission of actual values by the Generating Company and subsequent validation and

approval by the Commission.

A7. Truing-up

The Generating Company shall submit the Petition for truing up for each year of the Control Period

on the basis of annual Audited Accounts as per the timelines stipulated in Section A39.

Where after the truing up, the revenue recovered exceeds the trued-up value approved by the

Commission under these Regulations, the Generating Company shall refund to the

Beneficiaries, the surplus amount so recovered as specified in Clause 0 of these Regulations.

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Where after the truing up, the revenue recovered is less than the trued-up value approved by the

Commission under these Regulations, the Generating Company shall recover from the

Beneficiaries, the gap amount in accordance with Clause0 of these Regulations.

The amount under-recovered or over-recovered, along with simple interest at the rate equal to Bank

Rate as on April 01 of the respective year plus 200 basis points, shall be recovered or

refunded by the Generating Company in six equal monthly instalments starting within three

months from the date of the Tariff Order issued by the Commission:

Provided that no carrying cost on the duration of delay shall be allowed on unrecovered

gap if the Generating Company fails to submit the Petition as per timelines stipulated in

Section A39:

Provided further that any adverse financial impact on account of variation in

uncontrollable items due to lapse on part of the Generating Company or its

suppliers/contractors shall not be allowed in truing up.

A8. Annual Performance Review (APR)

The Generating Company shall file APR Petition, for Annual Performance Review along with details

of capital expenditure, additional capitalization, sources of financing, operations and

maintenance expenditure, actual loan portfolio with the interest paid, along with other

components of ARR incurred/projected to be incurred for the year under review, as per

timelines stipulated in Section A39 of these Regulations.

The Generating Company along with Annual Performance Review petition, shall also claim revised

ARR for the following year based on the truing up and annual performance review of

previous year/s.

The Scope of the Annual Performance Review shall be comparison of the approved expenses vis-à-

vis revised estimates for the year/sand shall comprise the following: -

Comparison of Performance Targets vis-a-vis revised estimates based on the latest actual data

available;

Comparison of Approved Capital Expenditure and Capitalisation vis-à-vis revised estimates

by the Generating Company based on the latest actual data available;

Comparison of Other Expenses such as Interest on Loan, Interest on Working Capital, Return

on Equity, Depreciation and O&M Expenses approved by the Commission vis-à-vis the

revised estimates by the Generating Company based on the latest actual data available;

Computation of the sharing of gains and losses on account of controllable factors for the

previous year;

Approved Revenue vis-à-vis revised estimates based on the latest actual data available;

Any other Expenses/Revenues impacting ARR.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

CHAPTER-III

DETERMINATION OF TARIFF

A9. Details for True-up, APR and determination of ARR & Tariff

The Generating Company shall submit the details for True-up for the previous year, Annual

Performance Review for the current year and Tariff Determination for the ensuing year as per

the principles discussed in the subsequent Sections.

A10. Principles for Determination of Tariff

Existing Generating Station: The Generating Stations with Commercial Operation Date prior to

April 01, 2026 shall be considered as Existing Generating Stations. The Tariff for such

generating stations shall be determined on the basis of Capital Cost along with additional

capitalisation as admitted by the Commission as on March 31, 2026.

New Generating Station: All such generating stations which have been declared under commercial

operation on or after April 01, 2026 shall file Petition seeking approval of Capital Cost and

Tariff for the Control Period within 60 days from the date of Commercial Operation along

with Auditor Certificate and in case of non-availability of Auditor Certificate, a Management

Certificate duly approved by Board of Directors of Company indicating the Capital Cost

incurred as on date of Commercial Operation and the projected additional capital expenditure

for respective years of the Control Period from FY 2026-27 to FY 2030-31.

A11. Principles of Tariff Determination

The Tariff in respect of a generating station may be determined for the whole of the generating

station or Unit thereof.

Where only a part of the generation capacity of a generating station is tied up for supplying power to

the beneficiaries through long-term Power Purchase Agreement, the Units for such part

capacity shall be clearly identified and, in such case, the tariff shall be determined for such

identified capacity. Where the Unit(s) corresponding to such part capacity cannot be

identified, the tariff of the generating station may be determined with reference to the capital

cost of the entire project, but tariff so determined shall be applicable corresponding to the part

capacity contracted for supply to the beneficiaries.

In case of expansion of existing generating station, the tariff shall be determined for the expanded

capacity in accordance with these Regulations:

Provided that the common infrastructure of existing generating station shall be utilized

for the expanded capacity and the benefit of new technology in the expanded capacity, as

determined by the Commission, shall be extended to the existing capacity.

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Assets installed for implementation of the revised emission standards shall form part of the existing

generation project and tariff thereof shall be determined separately on submission of the

completion certificate by the Board of the Generating Company.

In case of multi-purpose hydro schemes, with irrigation, flood control and power components, the

capital cost chargeable to the power component of the scheme only shall be considered for

determination of tariff.

A12. In-principle approval in specific circumstances:

The Generating Company undertaking any additional capitalization on account of change in law

events or Force Majeure conditions may file Petition for in-principle approval for incurring

such expenditure after prior notice to the beneficiaries along with underlying assumptions,

estimates and justification for such expenditure if the estimated expenditure exceeds 10% of

the admitted capital cost of the project or

Rs.50 Crore, whichever is lower.

A13. Capital Cost

The capital cost of the generating station as determined by the Commission after prudence check in

accordance with these Regulations shall form the basis for determination of tariff for existing

and new projects.

Capital cost for New Project

The capital cost for a new project shall include the following: -

a) The expenditure incurred or projected to be incurred up to the date of commercial

operation of the project;

b) Interest During Construction and Financing Charges, on the actual loans drawn;

c) Any gain or loss on account of Foreign Exchange Risk Variation pertaining to the

loan amount availed during the construction period;

d) Incidental Expenditure During Construction as computed in accordance with these

Regulations;

e) Capitalised Initial Spares subject to the ceiling rates in accordance with these

Regulations;

f) Adjustment of revenue due to sale of Infirm Power in excess of fuel cost prior to the

date of commercial operation as specified under Clause 0 of these Regulations;

g) Capital expenditure on account of ash disposal and utilization including handling

and transportation facility;

h) Capital expenditure incurred towards railway infrastructure and its augmentation for

transportation of coal upto the receiving end of the generating station but does not

include the transportation cost and any other appurtenant cost paid to the railways;

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

i) Capital expenditure on account of biomass handling equipment and facilities, for co-

firing;

j) Capital expenditure on account of emission control system necessary to meet the

revised emission standards and sewage treatment plant;

k) Expenditure on account of fulfilment of any conditions for obtaining environment

clearance for the project;

l) Expenditure on account of Change in Law and Force Majeure Events; and

m) Capital cost incurred or projected to be incurred by a thermal generating station, on

account of implementation of the norms under Perform, Achieve and Trade (PAT)

scheme of Government of India shall be considered by the Commission subject to

sharing of entire benefits accrued under the PAT scheme with the beneficiaries.

Capital cost for Existing Project

The capital cost of an existing project shall include the following: -

Capital cost admitted by the Commission prior to April 01, 2026 duly trued up excluding liability,

if any, as on April 01, 2026;

Capital expenditure on account of renovation and modernisation as admitted by this Commission

in accordance with these Regulations;

Capital expenditure on account of ash disposal and utilization including handling and

transportation facility;

Capital expenditure incurred towards railway infrastructure and its augmentation for

transportation of coal upto the receiving end of generating station but does not include the

transportation cost and any other appurtenant cost paid to the railways;

Capital cost incurred or projected to be incurred by a thermal generating station, on account of

implementation of the norms under Perform, Achieve and Trade (PAT) scheme of

Government of India shall be considered by the Commission subject to sharing of entire

benefits accrued under the PAT scheme with the beneficiaries.

Capital Cost for Hydro Generating Project

The capital cost in case of existing or new hydro generating station shall also include: -

a) Cost of approved rehabilitation and resettlement (R&R) plan of the project

inconformity with National R&R Policy and R&R package as approved;

Exclusion from Capital Cost

The following shall be excluded from the capital cost of the existing and new projects: -

a) The assets forming part of the project, but not in use;

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

b) De-capitalised assets after the date of commercial operation on account of

replacement or removal on account of obsolescence or shifting from one project to

another project.

Prudence Check of Capital Cost

The following principles shall be adopted for prudence check of capital cost of the existing or new

projects:

In case of the thermal generating station, prudence check of capital cost shall include scrutiny of

the capital expenditure, in the light of capital cost of similar projects based on past historical

data, wherever available, reasonableness of financing plan, interest during construction,

incidental expenditure during construction, use of efficient technology, cost over-run and

time over-run, procurement of equipment and materials through competitive bidding and

such other matters as may be considered appropriate by the Commission:

Provided that, while carrying out the prudence check, the Commission shall also

examine whether the Generating Company, has been careful in its judgements and decisions

in execution of the project;

In case where the Power Purchase Agreement entered into between the Generating Company and

the beneficiaries provides for ceiling of actual capital expenditure, the Commission shall take

into consideration such ceiling for prudence check.

Further, in case such cost has been incurred towards replacement or upgradation of any existing

assets, the original cost of the replaced asset shall be reduced and de-capitalised from the

Capital Cost.

Interest During Construction (IDC) and Incidental Expenditure during

Construction (IEDC)

Interest during construction (IDC) shall be computed corresponding to the loan from the date of

infusion of debt fund, and after taking into account the prudent phasing of funds up to SCOD.

Incidental expenditure during construction (IEDC) shall be computed from the zero date, taking into

account pre-operative expenses up to SCOD:

Provided that any revenue earned during construction period up to SCOD on account of

interest on deposits or advances, or any other receipts shall be taken into account for reduction

in incidental expenditure during construction.

In case of additional costs on account of IDC and IEDC due to delay in achieving the COD, the

Generating Company shall be required to furnish detailed justifications with supporting

documents for such delay including prudent phasing of funds in case of IDC and details of

IEDC during the period of delay and liquidated damages recovered or recoverable

corresponding to the delay.

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If the delay in achieving the COD is not attributable to the Generating Company, IDC and IEDC

beyond SCOD may be allowed after prudence check and the liquidated damages, if any,

recovered from the contractor or supplier or agency shall be adjusted in the capital cost of the

generating station.

If the delay in achieving the COD is attributable either in entirety on in part to the Generating

Company or its contractor or supplier or agency, in such cases, IDC and IEDC beyond SCOD

may be disallowed after prudence check either in entirety or on pro-rata basis corresponding

to the period of delay not condoned and the liquidated damages, if any, recovered from the

contractor or supplier or agency shall be retained by the Generating Company.

Controllable and Uncontrollable factors

The following factors shall be considered as controllable and uncontrollable factors for deciding time

over-run, cost escalation, IDC and IEDC of the project:

The “controllable factors” shall include but shall not be limited to the following: -

1. Efficiency in the implementation of the project not involving approved change in

scope of such project, change in statutory levies or change in law or Force Majeure

events; and

2. Delay in execution of the project on account of contractor or supplier or agency of the

Generating Company.

The “uncontrollable factors” shall include but shall not be limited to the following: -

1. Force Majeure events;

2. Change in law; and

3. Delay in Land acquisition and obtaining statutory approval except where the delay

is attributable to the Generating Company.

Initial Spares:

Initial spares shall be capitalised as a percentage of the Plant and Machinery cost, subject to

following ceiling norms:

Coal-based/lignite-fired thermal generating stations:

4.0%

Gas Turbine/Combined Cycle thermal generating stations: 4.0%

Hydro generating stations:

4.0%

Provided that:

Plant and Machinery cost shall be considered as the original project cost excluding

IDC, IEDC, Land Cost and Cost of Civil Works. The Generating Company for the

purpose of estimating Plant and Machinery Cost, shall submit the break-up of head

wise IDC and IEDC in its tariff application;

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

ii.

Where the generating station has any transmission equipment forming part of the

generation project, the ceiling norms for initial spares for such equipment shall be as

per the ceiling norms specified for transmission system under Jharkhand State

Electricity Regulatory Commission (Terms and Conditions for Determination of

Transmission Tariff) Regulations, 2025.

A14. Additional Capitalization

The additional capital expenditure in respect of a new project or an existing project incurred or

projected to be incurred, on the following counts within the original Scope of Work, after the

date of commercial operation and up to the cut-off date may be admitted by the Commission,

subject to prudence check:

a) Undischarged liabilities recognized to be payable at a future date;

b) Works deferred for execution;

c) Procurement of initial capital spares within the original scope of work, subject to

ceiling norms specified in this Regulation;

d) Liabilities to meet award of arbitration or for compliance of the order or directions

of any statutory authority, or orderor decree of any court of law;

e) On account of change in law or in compliance to any existing law; and

f) Capital Expenses incurred due to force majeure conditions:

Provided that in case of any replacement/up gradation of the assets, the additional

capitalization shall be worked out after adjusting the gross fixed assets and cumulative depreciation

of the assets replaced on account of de-capitalization;

Provided further that the details of work included in the original scope of work along

with estimates of expenditure, undischarged liabilities and works deferred for execution

shall be submitted along with the application for determination of tariff.

The additional capital expenditure incurred or projected to be incurred in respect of an existing

project or a new project within the original scope of work and after the cut-off date may be

admitted by the Commission, subject to prudence check on the following counts:

a) Liabilities to meet award of arbitration or for compliance of the directions or order

of any statutory authority, or order or decree of any court of law;

b) Change in law or compliance of any existing law;

c) Deferred works relating to ash pond or ash handling system in the original scope of

work;

d) Liability for works executed prior to the cut-off date;

e) Force Majeure events;

f) Liability for works admitted by the Commission after the cut-off date to the extent of

discharge of such liabilities by actual payments; and

g) Raising of ash dyke as a part of ash disposal system.

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In case of replacement/up gradation of assets deployed under the original scope of the existing project

after cut-off date, the additional capitalization may be admitted by the Commission, after

necessary adjustments in the gross fixed assets and the cumulative depreciation, subject to

prudence check on the following grounds:

a) The useful life of the assets is not commensurate with the useful life of the project

and such assets have been fully depreciated in accordance with the provisions of

these regulations;

b) The replacement of the asset or equipment is necessary on account of change in law

or Force Majeure conditions;

c) The replacement of such asset or equipment is necessary on account of obsolescence

of technology; and

d) The replacement of such asset or equipment has otherwise been allowed by the

Commission.

The capital expenditure, in respect of existing generating station incurred or projected to be incurred

on the following counts beyond the original scope, may be admitted by the Commission,

subject to prudence check:

a) Liabilities to meet award of arbitration or for compliance of order or directions of any

statutory authority, or order or decree of any court of law;

b) Change in law or compliance of any existing law;

c) Force Majeure events;

d) Any additional works/services, which have become necessary for efficient and

successful operation of the generating station, but not included in the original project

cost;

e) Need for higher security and safety of the plant as advised or directed by appropriate

Indian Government Instrumentality or statutory authorities responsible for national or

internal security;

f) Deferred works relating to ash pond or ash handling system in addition to the original

scope of work, on case-to-case basis:

Provided also that if any expenditure has been claimed under Renovation and

Modernisation or repairs and maintenance under O&M expenses, the same shall not be

claimed under this Regulation;

g) Usage of water from sewage treatment plant in thermal generating station.

In case there is additional capitalization proposed during the fag end of the project (at least 5 years

before the Useful life or extended Useful life) of the plant, the Generating Company is

required to submit the detail justification of its necessity during the fag year, Cost-Benefit

analysis, DPR, if any and rate reasonability along with the residual life assessment report of

the Project. The Commission may carry out prudence check based on the details submitted by

the Generating Company, its necessity, its financial viability before approval of such

additional capitalization.

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In case of de-capitalisation of assets of a Generating Company, the original cost of such asset as on

the date of decapitalization duly certified by its Statutory Auditor shall be deducted from the

value of gross fixed asset and corresponding outstanding loan on such assets as well as equity

shall be deducted from loan and the equity balances respectively. Such deductions shall be

carried out in the year such de-capitalisation takes place with corresponding adjustments in

cumulative depreciation and cumulative repayment of loan shall be carried out duly taking

into consideration the year in which it was capitalised.

Impact of additional capitalisation within the approved scheme cost on tariff shall be considered by

the Commission during the Annual Performance Review.

Provided that the Commission may consider any new scheme proposed on merits subject

to prudence check as per this Tariff Regulation.

Additional Capitalization on account of Renovation and Modernization

The Generating Company, for meeting the expenditure on Renovation and Modernization for the

purpose of extension of life beyond the useful life of the generating station or a Unit thereof,

shall make an application before the Commission for approval of the proposal with a Detailed

Project Report giving complete scope, justification, cost-benefit analysis, rate reasonability,

estimated life extension from a reference date, financial package, phasing of expenditure,

schedule of completion, reference price level, estimated completion cost including foreign

exchange component, if any, record of consultation with Beneficiaries and any other

information considered to be relevant by the Generating Company:

Provided that the Generating Company making the applications for renovation and

modernization shall not be eligible for Special Allowance under these Regulations:

Provided further that the Generating Company intending to undertake renovation and

modernization shall be required to obtain the consent of the beneficiaries for such renovation

and modernization and submit the same along with the Petition.

Where the Generating Company makes an application for approval of renovation and modernization

proposal, the approval shall be granted after due consideration of reasonableness of the cost

estimates, financing plan, schedule of completion, interest during construction, use of efficient

technology, cost-benefit analysis, expected life extension and such other factors as may be

considered relevant by the Commission.

Any expenditure incurred or projected to be incurred and admitted by the Commission after prudence

check based on the estimates of Renovation and Modernization expenditure and life

extension, and after deducting the accumulated depreciation already recovered from the

original project cost, shall form the basis for determination of tariff.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Special Allowance for Thermal Generating Station

In case of coal fired generating stations, the Generating Company, at its discretion, may opt to avail a

special allowance in accordance with the norms specified in this Regulation, as compensation

for meeting the requirement of expenses including renovation and modernization beyond the

Useful Life of the generating station or a Unit thereof, and in such an event revision of the

capital cost shall not be allowed and the applicable operational norms shall not be relaxed but

the special allowance shall be included in the annual fixed cost:

Provided also that such option shall not be available for a generating station or Unit,

which is in a depleted condition or operating under relaxed operational and performance

norms.

A Generating Company (coal-based/lignite fired thermal generating station) on opting for Special

Allowance shall be allowed@ Rs. 9.50 lakh/MW/year for the Control Period from FY 2026-

27 to FY 2030-31, Unit-wise from thefinancial year following the completion of useful life of

the respective Unit of generating station:

Provided that if a Unit is in commercial operation for more than 25 years as on April 01,

2026, this allowance shall be admissible from FY 2026-27:

Provided further that if special allowance is granted by the Commission, the expenditure

incurred or utilized from special allowance shall be maintained separately by the generating

station and details of same shall be made available to the Commission immediately thereafter.

Additional Capitalization on account of Revised Emission Standards

A Generating Company required to incur additional capital expenditure in the existing generating

station for compliance of the revised emissions standards shall share its proposal with the

beneficiaries and file a Petition for undertaking such additional capitalization along with

feasibility report and associated impact on Tariff before the Commission.

The Petition under above Clause0shall contain DPR, details of proposed technology and its

appropriateness, scope of the work, phasing of expenditure, schedule of completion, estimated

completion cost including foreign exchange component, if any, detailed computation of

indicative impact on tariff to the beneficiaries, Residual Life Assessment Report by an

competent third party technical agency and any other information considered to be relevant by

the Generating Company;

Provided that the Generating Company shall furnish all relevant details as sought by the

Commission to carry out necessary due diligence for deciding the matter.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Chapter-iV

TARIFF STRUCTURE

A15. Components of Tariff

The tariff for supply of electricity from a thermal generating station shall comprise two parts namely,

Capacity Charge (for recovery of Annual Fixed Cost consisting of the components as

specified in Clause0of these Regulations) and Energy Charge (for recovery of primary and

secondary fuel cost and cost of limestone and any other reagent, as may be applicable as

specified inClause0 of these Regulations, in case of thermal generating station) as specified in

these Regulations.

The supplementary Capacity Charges for additional capitalization and supplementary Energy

Charges, on account of implementation of revised emission standards in existing generating

station or new generating station, as the case may be, shall be determined by the Commission

separately.

Capacity Charges: The Capacity Charges shall be derived on the basis of annual fixed cost. The

Annual Fixed Cost (AFC) of a generating station shall consist of the following components:

1. Return on Equity;

2. Interest on Loan Capital;

3. Depreciation;

4. Interest on Working Capital;

5. Operation & Maintenance Expenses, and

6. Less: Non-Tariff Income, and

7. Less:

Income

from

Other

Business

specified

under

Clause0&

Clause 0:

Provided that Special Allowance in lieu of Renovation & Modernization, where opted in

accordance with Clause 0 and Clause 0of these Regulations, shall be recovered separately and

shall not be considered for computation of Working Capital.

Energy Charges: Energy Charges shall be derived on the basis of the landed fuel cost (LFC) of a

generating station (excluding hydro) and shall consist of the following cost:

(a)

Landed Fuel Cost of primary fuel;

(b)

Cost of secondary fuel oil consumption; and

(c)

Cost of limestone or any other reagent, as applicable:

Provided that any refund of taxes and duties along with any amount received on account

of penalties from fuel supplier shall be adjusted in fuel cost:

Provided further that the supplementary energy charges, if any, on account of meeting the

revised emission standards in case of a thermal generating station shall be determined

separately by the Commission.

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The tariff for supply of electricity from a hydro generating station shall comprise capacity charge and

energy charge to be derived in the manner specified in Clause 0 to Clause 0 of these

Regulations.

Debt-Equity Ratio

Existing Projects: For existing projects declaring Commercial Operation on or before April 01,

2026, the following Capital Structure is allowed: -

1. Debt-Equity ratio allowed by the Commission for determination of tariff for the period ending

March 31, 2026 shall be considered;

2. In case of the generating station declared under commercial operation prior to April 01, 2026,

but where debt-equity ratio has not been determined by the Commission for determination of

tariff for the period ending March 31, 2026, the Commission shall approve the debt-equity

ratio in accordance with Clause0 of these Regulations.

3. Any expenditure incurred or projected to be incurred on or after April 01, 2026, as may be

admitted by the Commission as additional capital expenditure for determination of tariff and

renovation and modernisation expenditure for life extension shall be serviced in the manner as

specified in Clause0of these Regulations.

New Projects: For new projects, declaring Commercial Operation on or after April 01, 2026, the

following Capital Structure is allowed: -

1. Normative debt-equity ratio of 70:30 shall be considered for the purpose of determination of

Tariff.

2. In case the actual equity employed is in excess of 30%, the amount of equity for the purpose

of tariff determination shall be limited to 30%, and the balance amount shall be considered as

normative loan;

3. In case the actual equity employed is less than 30%, the actual debt-equity ratio shall be

considered;

4. The premium, if any raised by the Generating Company while issuing share capital and

investment of internal accruals created out of free reserve, for the funding of the project, shall

also be reckoned as paid-up capital for the purpose of computing return on equity, only if such

premium amount and internal resources are actually utilized for meeting capital expenditure

of the generating station;

5. The Equity invested in foreign currency shall be designated in Indian rupees on the date of

each investment;

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

6. Any consumer contribution, work carried out under deposit and grant obtained for the

execution of the project shall not be considered as part of the capital structure for the purpose

of computation of normative debt-equity.

Note 1: Any expenditure admitted on account of committed liabilities within the original

scope of work and the expenditure deferred on techno-economic grounds but falling within

the original scope of work shall be serviced in the normative debt-equity ratio specified in

these Regulations;

Note 2: Any expenditure on replacement of old assets or on renovation and modernization or

life extension shall be considered on normative debt-equity ratio specified in these

Regulations after writing off the entire book value of the original assets from the capital cost

of the new asset;

Note 3: Any expenditure admitted by the Commission for determination of tariff on account

of new works not in the original scope of work shall be serviced in the normative debt-equity

ratio specified in these Regulations.

The Generating Company shall submit the resolution of the Board of the Company or approval of the

competent authority in other cases regarding infusion of funds from internal resources in

support of the utilization made or proposed to be made to meet the capital expenditure of the

generating station.

Return on Equity

The return on equity shall be computed in rupee terms, on the equity base determined in accordance

with Clause0 and Clause 0 of these Regulations.

The return on equity shall be computed on post-tax basis at the base rate of 14.50%for thermal

generating stations, and run of the river hydro generating station, and at the base rate of

15.50% for the storage type hydro generating stations including pumped storage hydro

generating stations and run of river generating station with pond age for generating stations

whose Date of Commercial Operations is after April 01, 2026:

The return on equity shall be computed on post-tax basis at the base rate of 15.00% for thermal

generating stations, and run of the river hydro generating station, and at the base rate of 16.00% for

the storage type hydro generating stations including pumped storage hydro generating stations and

run of river generating station with pond age for generating stations whose Date of Commercial

Operation is before April 01, 2026:

Provided that the return on equity shall be allowed only on the equity employed on assets

which are commissioned and are in use;

Provided further that the rate of return of a new project shall be reduced by 1.00% for

such period as may be decided by the Commission, if the generating station is found to be

declared under commercial operation without commissioning of any of Restricted Governor

Mode Operation (RGMO)/Free Governor Mode Operation (FGMO), data telemetry,

communication system up to load despatch centre or protection system;

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Provided also as and when any of the above requirements are found lacking in a

generating station based on the report submitted by the SLDC, return on equity shall be

reduced by 1.00% for the period for which the deficiency continues.

Income Tax

Tax on income, if any, on the Generating business of the Generating Company shall be limited to tax

on the allowed return on equity;

The income tax actually payable or paid limited to the tax on allowed return on equity shall be

included in the ARR while truing up. The actual assessment of income tax should take into

account benefits of tax holiday, and the credit for carry forward losses applicable as per the

provisions of the Income Tax Act, 1961 and its amendments thereof shall be passed on to the

Beneficiaries. Tax on the other income streams of the Generating Company shall not be

recovered from the Beneficiaries.

Interest on Loan Capital

The loans arrived at in the manner indicated in Clause 0 and Clause 0of these Regulations, shall be

considered as gross normative loan for calculation of Interest on Loan.

The normative loan outstanding as on April 01, 2026 shall be worked out by deducting the

cumulative repayment as admitted by the Commission up to March 31, 2026 from the gross

normative loan.

The repayment for each year of the Control Period shall be deemed to be equal to the depreciation

allowed for that financial year.

In case of de-capitalization of assets, the repayment shall be adjusted by taking into account

cumulative repayment on pro-rata basis and the adjustment should not exceed cumulative

depreciation recovered up to the date of de-capitalization of such assets.

Notwithstanding any moratorium period availed by the Generating Company, the repayment of loan

shall be considered from the first year of operation of the scheme/asset.

The rate of interest shall be the weighted average rate of interest calculated on the basis of the actual

loan portfolio at the beginning of each year applicable to the Generating Company:

Provided that if there is no actual loan for a particular year but normative loan is still

outstanding, then the rate of interest shall be considered on normative basis and shall be equal

to Bank Rate as on April 01of the respective year of the Control Period plus 200 basis points;

Provided also that, in case of new Generating Company commencing its operation after

the date of effectiveness of these Regulations, and which does not have actual loan portfolio,

the rate of interest shall be considered on normative basis and shall be equal to Bank Rate as

on April 01of the respective year of the Control Period plus 200 basis points.

The interest on loan shall be calculated on the normative average loan of the year by applying the

weighted average rate of interest;

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

The above interest computation shall exclude interest on loan amount, normative or otherwise, to the

extent of capital cost funded by Consumer Contribution, Grants or Deposit Works carried out

by Generating Company.

The Generating Company shall make every effort to re-finance the loan as long as it results in net

savings

interest

and

that

event

the

costs

associated

with

such

re-financing shall be pass-through to the Beneficiaries and the net savings shall be shared

between the beneficiaries and the Generating Company, in the ratio of 50:50.

In case of dispute, any of the parties may make an application in accordance with the JSERC

(Conduct of Business) Regulations, 2024, as amended from time to time, including statutory

re-enactment thereof for settlement of the dispute.

Interest on Working Capital

The Commission shall determine the Working Capital requirement on normative basis for coal-based

generating stations, which shall comprise the following components:

1. Cost of coal or lignite and limestone towards stock, if applicable, for 10 days for pit-head

generating stations and 20 days for non-pit-head generating stations for generation

corresponding to the normative annual plant availability factor or the maximum coal/lignite

stock storage capacity, whichever is lower;

2. Cost of coal or lignite and limestone for 30 days for generation corresponding to normative

annual plant availability factor;

3. Cost of secondary fuel oil for two months for generation corresponding to the Normative

Annual Plant Availability Factor, and in case of use of more than one secondary fuel oil, cost

of fuel oil stock for the main secondary fuel oil;

4. Operation and Maintenance expenses, including water charge and security expenses for one

month;

5. Maintenance spares @ 20% of Operation and Maintenance Expenses;

6. Receivables equivalent to 45days of capacity charges and energy charges for sale of

electricity calculated on the Normative Annual Plant Availability Factor:

Provided that the cost of primary fuel shall be based on the landed cost incurred

(taking into account normative transit and handling losses) by the generating station and gross

calorific value of the fuel on ‘as received basis’ less 85 kCal/kg on account of variation

during storage at generating station as per actual weighted average for three months preceding

the first month for which tariff is to be determined:

Provided further that in case of new generating station, the cost of fuel for the first

financial year shall be considered based on landed fuel cost (taking into account normative

transit and handling losses) and gross calorific value of the fuel as per actual weighted

average for three months, as used for infirm power, preceding date of commercial operation

for which tariff is to be determined.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

The working capital for Open-cycle Gas Turbine/Combined Cycle thermal based Generating Stations

shall comprise the following components:

1. Fuel expenses for 30 days corresponding to the Normative Annual Plant Availability Factor,

duly taking into account mode of operation of the generating station on gas fuel and liquid

fuel;

2. Liquid fuel stock for 15 days corresponding to the Normative Annual Plant Availability

Factor, and in case of use of more than one liquid fuel, cost of main liquid fuel, duly taking

into account mode of operation of the generating station on gas fuel and liquid fuel;

3. Operation and Maintenance Expenses, including water charges and security expenses for one

month;

4. Maintenance spares @ 30% of Operation and Maintenance Expenses including water charges

and security expenses;

5. Receivables equivalent to 45 days of capacity charge and energy charge for sale of electricity

calculated on Normative Annual Plant Availability factor, duly taking into account mode of

operation of the generating station on gas fuel and liquid fuel:

Provided that the cost of primary fuel shall be based on the landed cost incurred as per

actual weighted average for three months preceding the first month for which tariff is to be

determined:

Provided further that in case of new generating station, the cost of fuel for the first

financial year shall be considered based on landed fuel and gross calorific value of the fuel as

per actual weighted average for three months, as used for infirm power, preceding date of

commercial operation for which tariff is to be determined.

The working capital for Hydro Generating Stations (including Pumped Storage Hydro Generating

Station) and shall comprise the following components:

1. Operation and Maintenance expenses, including security expenses for one month;

2. Maintenance spares @ 15% of Operation & Maintenance Expenses including security

expenses;

3. Receivables equivalent to 45 days of annual fixed cost.

The rate of Interest on Working Capital shall be on normative basis and shall be equal to Bank Rate

plus 350 basis points as on September 30 of the financial year in which the MYT Petition is

file dor as on April 01, of the year during the Control Period from FY 2026-27 to FY 2030-31

in which the generating station or a Unit thereof, is declared under commercial operation,

whichever is later:

Provided that the rate of interest on working capital shall be trued up on the basis of Bank

Rate plus 350 basis points as applicable on April 01, of the respective financial year at the

time of true up.

The interest on working capital shall be payable on normative basis notwithstanding that the

Generating Company has not taken working capital loan from any outside agency.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Depreciation

Depreciation shall be calculated every year, on the amount of Capital Cost of the assets as admitted

by the Commission. In case tariff of multiple Units of a generating station is determined,

weighted average life for the generating station shall be applied:

Provided that depreciation shall not be allowed on assets funded by Consumer

Contribution and Capital Subsidies/Grants. Provision for replacement of such assets shall be

made in the Capital Investment Plan.

Depreciation for each year shall be determined based on the methodology as specified in these

Regulations along with the rates and other terms specified in these Regulations.

Depreciation shall be calculated annually, based on the straight-line method, at the rates specified at

Appendix-I. The base value for the purpose of depreciation shall be original cost of the asset:

Provided that the Generating Company shall ensure that once the individual asset is

depreciated to the extent of seventy (70) percent of the Book Value of that asset, remaining

depreciable value as on March 31 of the year closing shall be spread over the balance useful

life of the asset;

Provided that in case the tenure of PPA executed between the Generating plant and

Beneficiaries is more than that of the Useful life of the plant, the Commission after prudence

check may consider the PPA life for spreading the remaining depreciable value as on March

31 of the year instead of useful life;

Provided that in case after carrying out the residual life assessment, it is found that the

residual life of the generating station or unit as the case may be is beyond the useful life

specified in these regulations the Commission after prudence check, may spread the

remaining depreciable value to be recovered over the extended life of the plant.

Depreciation shall be charged from the first year of commercial operation of the asset. In case, the

operation of the asset is for a part of the year, depreciation shall be charged on pro-rata basis:

Provided that any depreciation disallowed on account of lower availability of the

generating station shall not be allowed to be recovered at a later stage during the useful life

and the extended life.

The residual value of assets shall be considered as 10%and depreciation shall be allowed to a

maximum of 90% of the original cost of the asset. Land other than land held under lease and

the land for reservoir in case of hydro generating station shall not be considered a depreciable

asset and its cost shall be excluded while computing the depreciable value of the asset. Land

is not a depreciable asset and its cost shall be excluded while computing 90% of the original

cost of the asset:

Provided that the salvage value for IT equipment and software shall be considered as NIL and

100% value of the assets shall be considered depreciable:

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Provided further that in case of hydro generating stations, the salvage value shall be as

provided in the agreement signed by the developers with the State Government for creation of

the site:

Provided also that the capital cost of the assets of the hydro generating station for the

purpose of computation of depreciable value shall correspond to the percentage of sale of

electricity under long-term Power Purchase Agreement at regulated tariff.

The Commission may, in the absence of the Fixed Assets Register, calculate Depreciation (%)

arrived by dividing the Depreciation and the Average Gross Fixed Assets as per the latest

available Audited Accounts of the Generating Company. The Depreciation (%) so arrived

shall be multiplied by the Average GFA approved by the Commission for the relevant

Financial Year to arrive at the Depreciation for that Financial Year.

In case of de-capitalization of assets in respect of Generating Station or Unit thereof the cumulative

depreciation shall be adjusted by taking into account the depreciation recovered through tariff

towards decapitalization asset during its useful services.

Operation and Maintenance Expenses

Operation and Maintenance (O&M) expenses shall comprise of the following:

1. Salaries, wages, pension contribution and other employee costs;

2. Administrative and General costs;

3. Repairs and maintenance expenses;

New Generating Stations:

The normative Operation and Maintenance Expenses of Coal based and Lignite fired (including those

based on Circulating Fluidised Bed Combustion (CFBC) technology) generating stations shall

be as follows:

Year

200/210/250

MW Sets

300/330/350

MWSets

500 MW Sets

600 MW and

above Sets

FY 2026-27

40.92

34.04

27.17

25.78

FY 2027-28

43.07

35.83

28.60

27.13

FY 2028-29

45.33

37.71

30.10

28.56

FY 2029-30

47.71

39.69

31.68

30.06

FY 2030-31

50.21

41.78

33.34

31.64

Note: all the values are in Rs. Lakh/MW

Provided that where the date of Commercial Operation of any additional Unit(s)of a

Generating Station after first four Units occurs on or after April 01, 2026, the Operation

&Maintenance Expenses of such additional Unit(s) shall be admissible at 90% of the

Operation & Maintenance Expenses as specified above:

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Provided further that the O&M Expenses for the existing Stations will be approved by

the Commission in their respective MYT Orders based on the actual value of O&M expenses

of the past Control Period and after carrying out due prudence check.

The Normative Operation and Maintenance Expenses of Open Cycle Gas Turbine/Combined Cycle

generating Stations shall be as follows:

Year

Gas Turbine/Combined Cycle

Generating Stations

Small Turbine Power

Generating Stations

FY 2026-27

18.18

47.86

FY 2027-28

19.14

50.37

FY 2028-29

20.14

53.02

FY 2029-30

21.20

55.80

FY 2030-31

22.32

58.73

Note: all the values are in Rs. Lakh/MW

The Normative Operation and Maintenance Expenses for Lignite-fired generating stations shall be as

follows:

Year

125 MW Sets

FY 2026-27

38.81

FY 2027-28

40.85

FY 2028-29

42.99

FY 2029-30

45.25

FY 2030-31

47.62

Note: all the values are in Rs. Lakh/MW

The Normative Operation and Maintenance Expenses of generating stations based on coal rejectsshall

be as follows:

Year

O&M Expenses

FY 2026-27

38.81

FY 2027-28

40.85

FY 2028-29

42.99

FY 2029-30

45.25

FY 2030-31

47.62

Note: all the values are in Rs. Lakh/MW

Existing Generating Stations

The O&M Expenses for the Base Year of the Control Period shall be approved by the Commission

taking into account the audited accounts of FY 2020-21 to FY 2024-25, Business Plan filed

by the Generating Company, estimates of the actual for the Base Year, prudence check and

any other factor considered appropriate by the Commission.

The O&M expenses permissible towards ARR of each year of the Control Period shall be approved

based on the formula shown below:

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

O&Mn = (R&Mn + EMPn + A&Gn) + Terminal Liabilities

Where,

R&Mn – Repair and Maintenance Costs of the Generating Company for the n^thyear;

EMPn – Employee Costs of the Generating Company for the n^th year excluding terminal

liabilities;

A&Gn – Administrative and General Costs of the Generating Company for the n^th year.

The above components shall be computed in the manner specified below:

(Repair &Maintenance) n = K*GFA*(INDXn/ INDXo)

Where,

‘K’ is a constant (expressed in %) governing the relationship between Repair

&Maintenance costs and Gross Fixed Assets (GFA) and shall be calculated based on the

% of Repair &Maintenance to GFA of the preceding years of the Base Year in the MYT

Order after normalising any abnormal expenses;

‘GFA’ is the opening value of the gross fixed asset of the n^thyear;

INDXn is the indexation for nth year of control period;

INDXo is the indexation for the base year of the control period;

EMPn + A&Gn = [(EMPn-1)*(1+Gn)+ (A&Gn-1)]*(INDXn/ INDXn-1)

Where,

EMPn-1 – Employee Costs of the Generating Company for the (n-1)^th year excluding

terminal liabilities;

A&Gn-1 – Administrative and General Costs of the Generating Company for the (n-1)^th

year excluding legal/litigation expenses;

INDXn – Inflation factor to be used for indexing the employee cost and A&G cost. This

will be a combination of the Consumer Price Index (CPI) and the Wholesale Price Index

(WPI) for immediately preceding year before the base year;

Gn – is a growth factor for the n^th year and it can be greater than or lesser than zero based

on the actual performance. Value of Gn shall be determined by the Commission in the

MYT Order for meeting the additional manpower requirement based on the Generating

Company Filing, benchmarking and any other factor that the Commission feels

appropriate;

INDXn = 0.55*CPIn +0.45*WPIn;

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Note-1: For the purpose of estimation, the same INDXn/INDXn-1value shall be used for all

years of the Control Period. However, the Commission will consider the actual values in the

INDXn/INDXn-1at the end of each year during the Annual Performance Review exercise and

true up the employee cost and A&G expenses on account of this variation, for the Control

Period;

Note-2: Any variation due to changes recommended by the Pay Commission or wage revision

agreement, etc., will be considered separately by the Commission.

Note-3: Terminal Liabilities will be approved as per actual submitted by the Generating

Company along with documentary evidence such as actuarial studies.

The Generating Company, in addition to the above details shall also submit the detailed break-up of

the

Legal/Litigation

Expenses

for

the

Years

(FY 2020-21 to FY 2024-25) along with the details and documentary evidence of incurring

such expenses. The Commission shall approve the legal expenses as per the relevant

provisions of the Jharkhand State Litigation Policy based on the necessary documentary

evidence submitted for the Control Period and shall carry out due prudence check of legal

expenses at the time of truing up.

The additional Operation and Maintenance expenses on account of implementation of revised

emission standards shall be approved on case-to-case basis.

In case of the hydro generating stations declared under commercial operation on or after April 01,

2026, operation and maintenance expenses of first year shall be fixed at 3.5% and 5.0% of the

original project cost (excluding cost of rehabilitation & resettlement works, IDC and IEDC)

for stations with installed capacity exceeding 200 MW and for stations with installed capacity

less than 200 MW respectively, with annual escalation (INDXn/INDXn-1) as determined

annually.

Other Charges

The Water Charges, Security Expenses and Capital Spares for thermal generating stations shall be

allowed separately after prudence check:

Provided that Water Charges shall be allowed based on water consumption, depending

upon type of plant, type of cooling water system, subject to prudent check. The details

regarding the same shall be furnished along with the Petition.

Provided that the generating station shall submit the details of year wise actual capital

spares consumed at the time of truing up with appropriate justification for incurring the same

and substantiating that the same is not funded through special allowance as per Clause 14.11

and 14.12 of the Regulation or claimed as a part of additional capitalisation or consumption of

stores and spares and renovation and modernization

The Security Expenses and Capital Spares for hydro generating stations shall be allowed separately

after prudence check:

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Provided that the generating station shall submit the assessment of the security requirement

and estimated expenses, and the details of year-wise actual capital spares consumed at the

time of truing up with appropriate justification.

Non-Tariff Income

The amount of Non-Tariff Income relating to the generating business as approved by the

Commission in prudent, just and fair manner, shall be deducted from the ARR in determining

the Tariff of the generating business:

Provided that the Generating Company shall submit full details of its forecast of Non-

Tariff Income to the Commission in such form as may be stipulated by the Commission.

The Non-Tariff Income shall include:

a) Income from rent of land or buildings;

b) Income from sale of scrap;

c) Income from investments;

d) Interest accrued on advances to suppliers/contractors;

e) Interest income on loans / advances to employees;

f) Income from rental of staff quarters;

g) Income by rental from contractors;

h) Income by hire charges from contactors and others;

Income by supervision charges, etc.;

Supervision charges for capital works;

k) Income from advertisements;

Income from sale of tender documents;

m) Income from sale of ash and other by products;

n) Profit from sale of assets (i.e. difference of Sale value and Book value);

o) Any other Non-Tariff Income:

Provided that the interest earned from investments made out of return on equity corresponding

to the Generating Business of the Generating Company shall not be included in Non-Tariff Income.

Provided that the onus to substantiate, to the satisfaction of the Commission, that such

investments have been out of Return on Equity shall be on the Generating Company.

Income from Other Business

Where the Generating Company is engaged in any Other Business utilising infrastructure and/or

manpower of regulated business by any means, the income from such business will be

calculated considering the following conditions:

1. The Generating Company shall not in any manner utilize the assets and facilities of the

Generating Business or otherwise directly or indirectly allow the activities to be

undertaken in a manner that it results in the Generating Business subsidising the Other

Business in any manner;

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

2. The Generating Companyshallnotinanymanner,directlyorindirectlyencumbertheassetsand

facilities of the Generating Business for the Other Business or for any activities other

than the Generating Business;

3. The Generating Company shall duly pay for all costs accounted for in the Generating

Business,

which

havebeenincurredforOtherBusinessandintheeventofsuchcostbeingincurred commonly for

both the Generating Business and Other Business, apportion such cost and

ensureduepaymentofapportionedcoststotheGeneratingBusinessfromtheOther Business;

4. The revenue derived from the Other Business shall be commens urate with prevailing

market condition for such similar business activities;

5. Inadditiontothesharingofcostsundersub-clause3above,the Generating Company shall

accountforandensureduepaymenttotheGeneratingBusinessacertainproportionof revenues

from the Other Business. The Generating Company shall retain 50% of the revenues

arising on account of Other Business and pass on the remaining 50% of the revenues to

the Beneficiaries.

The revenue from Other Business shall be deducted from the ARR in calculating the revenue

requirement of the Generating Company in a prudent, just and fair manner:

Provided that the Generating Company shall follow a reasonable basis for allocation of

all joint and common costs between the Generating Business and the Other Business and shall

submit the Allocation Statement as approved by the Board of Directors to the Commission

along with his application for determination of tariff:

Provided further that where the sum total of the direct and indirect costs of such Other

Business exceeds the revenues from such Other Business, no amount shall be allowed to be

added to the ARR of the Generating Company on account of such Other Business.

A16. Norms of Operation for Thermal Power Generating Station

The values for operational norms for the existing generating stations have been decided, based on the

past operational data of these plants. The norms of operation as given hereunder shall apply

for existing thermal power stations in the State:

Jojobera Thermal Power Station (TPCL) - Unit-II

Parameters

UoM

FY26-27

FY27-28

FY28-29

FY29-30

FY30-31

Normative Annual Plant Availability Factor

85.00

Normative Annual Plant Load Factor

85.00

Gross Station Heat Rate

kCal/kWh

2567.00

Auxiliary Consumption

10.00

Secondary Fuel Oil Consumption

ml/kWh

0.5

Jojobera Thermal Power Station (TPCL) - Unit-III

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Parameters

UoM

FY26-27

FY27-28

FY28-29

FY29-30

FY30-31

Normative Annual Plant Availability Factor

85.00

Normative Annual Plant Load Factor

85.00

Gross Station Heat Rate

kCal/kWh

2577.00

Auxiliary Consumption

10.00

Secondary Fuel Oil Consumption

ml/kWh

0.5

Adhunik Power & Natural Resources Limited (APNRL) - Unit-I

Parameters

UoM

FY26-27

FY27-28

FY28-29

FY29-30

FY30-31

Normative Annual Plant Availability Factor

85.00

Normative Annual Plant Load Factor

85.00

Gross Station Heat Rate

kCal/kWh

2387.00

Auxiliary Consumption

9.00

Secondary Fuel Oil Consumption

ml/kWh

0.50

Adhunik Power & Natural Resources Limited (APNRL) - Unit-II

Parameters

UoM

FY26-27

FY27-28

FY28-29

FY29-30

FY30-31

Normative Annual Plant Availability Factor

85.00

Normative Annual Plant Load Factor

85.00

Gross Station Heat Rate

kCal/kWh

2387.00

Auxiliary Consumption

9.00

Secondary Fuel Oil Consumption

ml/kWh

0.50

Inland Power Limited (IPL)

Parameters

FY 2026-27

FY 2027-28

FY 2028-29

FY 2029-30

FY 2030-31

Normative Annual Plant Availability Factor (%)

82.50

Normative Annual Plant Load Factor (%)

82.50

Gross Station Heat Rate (kcal/kWh)

2902.00

Auxiliary Consumption (%)

10.50

Secondary Fuel Oil Consumption (ml/kWh)

1.00

Tenughat Thermal Power Station (TVNL)- Unit-I

Parameters

FY 2026-27

FY 2027-28

FY 2028-29

FY 2029-30

FY 2030-31

Normative Annual Plant Availability Factor (%)

85.00

Normative Annual Plant Load Factor (%)

85.00

Gross Station Heat Rate (kcal/kWh)

2547.00

Auxiliary Consumption (%)

9.50

Secondary Fuel Oil Consumption (ml/kWh)

1.00

Tenughat Thermal Power Station (TVNL)- Unit-II

Parameters

FY 2026-27

FY 2027-28

FY 2028-29

FY 2029-30

FY 2030-31

Normative Annual Plant Availability Factor (%)

85.00

Normative Annual Plant Load Factor (%)

85.00

Gross Station Heat Rate (kcal/kWh)

2547.00

Auxiliary Consumption (%)

9.50

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Parameters

FY 2026-27

FY 2027-28

FY 2028-29

FY 2029-30

FY 2030-31

Secondary Fuel Oil Consumption (ml/kWh)

1.00

Provided that for any existing generating station whose norms are not specified above and

whose determination of tariff falls under the jurisdiction of this Commission, the Commission

shall determine the norms for such generating station on case-to-case basis taking into

consideration actuals and the norms specified in the previous Control Period after carrying out

due prudence check based on the petition submitted by the Generating Company.

The Commission after prudence check may modify these norms of operations after considering the

capital investments approved for any Renovation and Modernisation activities in these plants.

However, under normal working scenario, the Commission may not review the norms of

operations as mentioned in Clause 0 of these Regulations.

The norms of operation for generating stations other than the stations mentioned above shall be as

under:

1. Normative Annual Plant Availability Factor (NAPAF):

85%;

2. Normative Annual Plant Load Factor (NAPLF) for Incentive: 85%;

3. Gross Station Heat Rate:

For Coal-based and lignite-fired Thermal Generating Stations:

SHR=1.05 x Design Heat Rate (kcal/kWh);

Where, the Design Heat Rate of the generating Unit means the Unit heat rate guaranteed

by the supplier at conditions of 100% MCR, zero percent make up, design coal and design

cooling water temperature/back pressure:

Provided that the design heat rate shall not exceed the following maximum design Unit

heat rates depending upon the pressure and temperature ratings of the Units:

Particulars

Values

Pressure Rating (kg/cm²)

150

170

247

270

SHT/RHT (⁰C)

535/535

537/537

537/565

565/593

593/593

600/600

Type of BFP

Electrical

Driven

Turbine

driven

Turbine

driven

Turbine

driven

Turbine

driven

Turbine

driven

Turbine

driven

Max Turbine Cycle Heat

rate(kcal/kWh)

1955

1950

1935

1900

1850

1810

1800

Minimum Boiler Efficiency

Sub-Bituminous Indian Coal

0.86

0.865

Bituminous Imported Coal

0.89

0.895

Maximum Design Heat rate (kcal/kWh)

Sub-Bituminous Indian Coal

2273

2267

2250

2222

2151

2105

2081

Bituminous Imported Coal

2197

2191

2174

2135

2078

2034

2022

Provided further that in case pressure and temperature parameters of a Unit are different

from above ratings, the maximum design unit heat rate of the nearest class shall be taken:

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Provided also that where unit heat rate has not been guaranteed but turbine cycle heat rate

and boiler efficiency are guaranteed separately by the same supplier or different suppliers,

the unit design heat rate shall be arrived at by using guaranteed turbine cycle heat rate and

boiler efficiency:

Provided also that where the boiler efficiency is lower than 86% for Sub bituminous

Indian coal and 89% for bituminous imported coal, the same shall be considered as 86% and

89% for Sub-bituminous Indian coal and bituminous imported coal respectively, for

computation of station heat rate:

Provided also that maximum turbine cycle heat rate shall be adjusted for type of dry

cooling system:

Provided also that if one or more Units were declared under commercial operation prior

to April 01, 2026, the heat rate norms for those Units as well as Units declared under

commercial operation on or after April 01, 2026, shall be lowest of the heat rate norms

arrived at by above methodology and the norms specified in Clause 0 of these Regulations:

Provided also that for Generating stations based on coal rejects, the Commission shall

approve the Station Heat Rate on case-to-case basis.

Note: In respect of Units where the boiler feed pumps are electrically operated, the

maximum design unit heat rate shall be 40 kcal/kWh lower than the maximum design unit

heat rate specified above with turbine driven BFP.

For Gas-based/Liquid-based thermal generating Unit(s)/ block(s):

For Natural Gas = 1.05xDesign Heat Rate of the Unit/block (kcal/kWh)

For RLNG = 1.071xDesign Heat Rate of the Unit/block for Liquid Fuel (kcal/kWh);

Where, the Design Heat Rate of a Unit shall mean the guaranteed heat rate for a Unit at

100% MCR and at site ambient conditions; and the Design Heat Rate of a block shall mean

the guaranteed heat rate for a block at 100% MCR, site ambient conditions, zero percent

make up, design cooling water temperature/back pressure.

4. Auxiliary Energy Consumption:

For Coal-based generating stations with Natural Draft cooling tower or without cooling

tower:

Sr.no.

Generating Station

Auxiliary Energy

Consumption

200 MW Series

8.50%

300 MW and above Series with Steam

driven Boiler Feed Pumps

5.75%

300/330/350/500 MW Series with

8.00%

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Sr.no.

Generating Station

Auxiliary Energy

Consumption

Electrically driven Boiler Feed Pumps

Provided that for thermal generating stations with induced draft cooling towers,

the norms shall be further increased by 0.5%:

Provided further that additional auxiliary energy consumption as follows shallbe

allowed for plants with Dry Cooling Systems:

Sr.no.

Type of Dry Cooling System

Type of Dry

Cooling System

Direct cooling air cooled condensers

with mechanical draft fans

1.0%

Indirect cooling system employing jet

condensers with pressure recovery

turbine and natural draft tower

0.5%

Note: The auxiliary energy consumption for the Unit capacity of less than 200 MW sets

shall be dealt on case-to-case basis.

For Gas Turbine/Combined Cycle generating stations:

Sr.no.

Generating Station

Auxiliary Energy

Consumption

Combined Cycle

2.5%

Open Cycle

1.0%

Wherever the station is designed for combined cycle operation, the approval of SLDC

shall be required for operation of the station in the open cycle mode.

5. Secondary Fuel Oil Consumption:

For Coal-based generating stations: 0.50ml/kWh;

For Lignite-fired generating stations: 1.00ml/kWh

Operational norms specified in these Regulations are the ceiling norms and shall not preclude the

Generating Company and the beneficiaries from agreeing to the improved norms and in case

the improved norms are agreed to, such improved norms shall be applicable for determination

of tariff. The Generating Company and the beneficiaries are required to provide the detail of

such improved norms before the Commission.

In case of renovation and modernisation, derating and rerating of the generating station, norms of

operation may be reviewed and modified accordingly by the Commission.

Compensation for the operation of generating station below normative plant availability

factor.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

The generating station whose tariff is determined by the commission under section 62 of the Act shall

be compensated for degradation of station hear rate and auxiliary energy compensation,

consumption of additional secondary fuel oil due to loading below normative plant

availability factor specified in Section A 16 of these Regulation.

The compensation of degradation under clause 16.6 of the regulation shall be borne by the entity /

beneficiary that has caused the plant to be operated at a schedule lower than the corresponding

Normative Plant Availability Factor.

The compensation for the station heat rate and auxiliary energy consumption shall be worked out in

terms of energy charge rate.

For the purpose of compensation under clause 16.6 of this regulation, the degradation of gross station

heat rate (SHR) over and above the norms specified under clause 16.1 of the regulation shall

be considered as under: -

For coal or lignite based generating stations: -

Sl No

Unit loading as a % of

Installed Capacity of the

Unit

Increase in SHR

(for

subcritical

units) %

Increase

SHR

(for

supercritical

units) %

85-100

Nil

80-<85

2.1

1.8

75-<80

3.0

2.5

70-<75

4.0

3.3

65-<70

5.1

4.1

60-<65

6.1

4.9

55-<60

7.6

6.0

50-<55

9.2

7.1

45-<50

11.3

8.3

40-<45

13.8

9.9

For the purpose of compensation under clause 16.6 of this regulation, the degradation of auxiliary

energy consumption (AEC) over and above the norms specified in Section A 16of this

regulation shall be considered as under: -

For coal or lignite based generating stations:

Sl No

Unit loading as a % of

Installed Capacity of the Unit

degradation

AEC

admissible

85-100

Nil

80-<85

0.5

70-<80

1.1

60-<70

1.8

50-<60

2.5

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Sl No

Unit loading as a % of

Installed Capacity of the Unit

degradation

AEC

admissible

40-<50

3.2

The additional compensation for secondary fuel oil consumption shall be permissible over and above

seven (7) starts/ stop in a year for the generating station under unit shutdown in terms of Grid

Code. For the purpose of compensation under clause 16.6 of this regulation, the secondary

fuel oil consumption per start up shall be considered based on the following norms of actuals,

whichever is lower: -

Unit Size (MW)

Secondary fuel oil consumption per start up (KL)

200/210/250 MW

500 MW

100

660 MW

130

800 MW

150

Additional specific secondary fuel oil consumption of 0.2 ml/ kWh shall be provided for units

operating below 55 % unit loading and for supercritical or ultracritical units, a 10 % extra

quantity of start-up oil shall be provided for a period of 3 years from the date of Commercial

Operation (CoD), due to teething or stability issues.

The change in the schedule of power under the provisions of Central Electricity Regulatory

Commission (Ancillary Services Operations) Regulations, 2022 shall not be considered for

compensation.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

A17. Methodology for calculation of Capacity Charge& Energy Chargefor Thermal Generating

Stations

Computation and Payment of Capacity Charge for Thermal

Generating Stations

The Fixed Cost of a thermal generating station shall be computed on annual basis, based on norms

specified under these Regulations, and recovered on monthly basis under capacity charge. The

total capacity charge payable for a generating station shall be shared by its Beneficiaries as

per their respective percentage share or allocation in the capacity of the generating station.

The full Capacity Charges shall be recoverable at Normative Annual Plant Availability Factor

(NAPAF) specified in Clause 0 and Clause 0of these Regulations. Further, the recovery of

Capacity Charges below the level of Normative Annual Plant Availability Factor (NAPAF)

will be on a pro-rata basis. At zero availability, no Capacity Charges shall be payable.

The Capacity Charge payable to a thermal generating station for a calendar month shall be calculated

in accordance with the following formulae:

CC1=(AFC/12)(PAF1/NAPAF) subject to ceiling of (AFC/12);

CC2=((AFC/6)(PAF2/NAPAF) subject to ceiling of (AFC/6))-CC1;

CC3=((AFC/4)(PAF3/NAPAF) subject to ceiling of (AFC/4))-(CC1+CC2);

CC4=((AFC/3)(PAF4/NAPAF) subject to ceiling of (AFC/3))-(CC1+CC2+CC3);

CC5=((AFCx5/12)(PAF5/NAPAF) subject to ceiling of (AFCx5/12))-(CC1+CC2+CC3 +CC4);

CC6=((AFC/2)(PAF6/NAPAF) subject to ceiling of (AFC/2))-(CC1+CC2+CC3+CC4 + CC5)

CC7=((AFCx7/12)(PAF7/NAPAF)

subject

ceiling

(AFCx7/12))-(CC1+CC2+CC3

+CC4+CC5+CC6);

CC8=((AFCx2/3)(PAF8/NAPAF) subject to ceiling of (AFCx2/3))-(CC1+CC2 +CC3 +CC4

+CC5+CC6+CC7);

CC9=((AFCx3/4)(PAF9/NAPAF)

subject

ceiling

(AFCx3/4))-(CC1+CC2

+CC3+CC4+

CC5+CC6+CC7+CC8);

CC10=((AFCx5/6)(PAF10/NAPAF)

subject

ceiling

(AFCx5/6))-(CC1+CC2+CC3

+CC4+CC5+CC6+CC7+CC8+CC9);

CC11=((AFCx11/12)(PAF11/NAPAF)

subject

ceiling

(AFCx11/12))-(CC1+CC2+CC3

+CC4+CC5+CC6+CC7+CC8+CC9+CC10);

CC12=((AFC)(PAFY/NAPAF)

subject

ceiling

(AFC))-(CC1+CC2+CC3+CC4+CC5+

CC6+CC7+CC8+CC9+CC10+CC11):

Provided that in case of generating station or Unit thereof under shutdown due to

Renovation and Modernisation, the Generating Company shall be allowed to recover Operation

and Maintenance expenses and interest on loan only;

Where,

AFC = Annual Fixed Cost, specified for the year (in Rupees);

NAPAF = Normative Annual Plant Availability Factor (%);

PAFM = Plant Availability Factor achieved up to the end of n^thmonth (%);

PAFY = Plant Availability Factor achieved during the Year (%).

CC1, CC2, ..…CC12 are the Capacity Charges of 1^st, 2^nd …… and 12^thmonths, respectively.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

The Plant Availability Factor achieved for the month (PAFM) shall be computed in accordance with

the following formula:

PAFM= 100x∑ DCi/{N x IC x (1 - Aux)}%

i=1

Where,

Aux: Normative Auxiliary Energy Consumption (%);

DCi:Average Declared Capacity (in ex-bus MW), for the i^thtime block in such period;

IC: Installed Capacity (in MW) of the generating station;

N: Number of time blocks in the given period.

In addition to the capacity charge, an incentive shall be payable to a generating station or Unit thereof

at a flat rate of 50 paise/kWh for ex-bus scheduled energy corresponding to scheduled

generation in excess of ex-bus energy corresponding to Normative Annual Plant Load Factor

(NAPLF).

In case of fuel shortage in a thermal generating station, the Generating Company may propose to

deliver

higher

during

peak-load

hours

saving

fuel

during

off-peak hours. The SLDC may then specify a pragmatic day-ahead schedule for the

generating station to optimally utilize its MW and energy capability, in consultation with the

Beneficiaries. DCi in such an event shall be taken to be equal to the maximum peak-hour ex-

power plant MW schedule specified by the SLDC for that day.

Computation and Payment of Energy Charge for Thermal Generating

Stations

The energy (variable) charge shall cover primary fuel and secondary fuel costs and limestone

consumption cost (where applicable) and shall be payable by every beneficiary for the total

energy scheduled to be supplied to such beneficiary during the calendar month on ex-power

plant basis, at the specified energy charge rate of the month (with fuel price adjustment and

limestone adjustment).The total energy charge payable to the Generating Company for a

month shall be:

Energy Charges = Energy Charge Rate (in Rs./kWh) x Scheduled Energy (Ex-Bus) for the Month

(in kWh)

Energy Charge Rate(in Rs./kWh) on ex-power plant basis shall be determined to three decimal places

in accordance with the following formulae:

For coal-based stations and lignite fired stations:

Energy Charge Rate (ECR) = {(SHR - SFC x CVSF) x LPPF/CVPF+SFC x LPSFi+ LC x LPL} /(1

– Aux)

For gas and liquid fuel-based stations:

ECR = SHR x LPPF / {CVPF x (1 – Aux)}

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Where,

Aux: Normative auxiliary energy consumption (%);

CVPF: (a)Weighted Average Gross calorific value of coal as received, in kcal per kg for coal-

based stations less 85 Kcal/Kg on account of variation during storage at generating

station;

(b) Weighted Average Gross calorific value of primary fuel as receivedin kcal per kg, per

litre or per standard cubic meter, as applicable for lignite, gas and liquid fuel-based

stations;

(c)In case of blending of fuel from different sources, the weighted average Gross calorific

value of primary fuel shall be arrived in proportion to blending ratio.

CVSF: Calorific value of secondary fuel (kcal/ml);

ECR - Energy Charge Rate (Rs./kWh);

SHR - Gross Station Heat Rate (kcal/kWh);

LC = Normative limestone consumption (kg/kWh);

LPPF - Weighted average landed price of primary fuel, in Rupees per kg, per litre or per

standard cubic metre, as applicable, during the month. (In case of blending of fuel from different

sources, the weighted average landed price of primary fuel shall be arrived in proportion to

blending ratio);

LPSFi=Weighted Average Landed Price of Secondary Fuel in Rs./ml during the month;

LPL = Weighted average landed price of limestone in Rupees per kg;

SFC - Specific fuel oil consumption, in ml per kWh.

Provided that the energy charge rate for a gas or liquid fuel-based station shall be

adjusted for open cycle operation based on certification of SLDC for the open cycle operation

during the month.

The Generating Company shall provide to the beneficiaries of the generating station the details of

parameters of GCV and price of fuel, i.e., domestic coal, imported coal, e-auction coal, lignite,

natural gas, RLNG, liquid fuel, etc.:

Provided that the details of blending ratio of the imported coal with domestic coal,

proportion of e-auction coal and the weighted average GCV of the fuels as received shall also be

provided separately, along with the bills of the respective month:

Provided further that copies of the bills and details of parameters of GCV and price of

fuel, i.e., domestic coal, imported coal, e-auction coal, lignite, natural gas, RLNG, liquid fuel,

etc., and details of blending ratio of the imported coal with domestic coal, proportion of e-

auction coal shall also be displayed on the website of the Generating Company. The details

should be available on its website on monthly basis for a period of three months.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

The landed fuel cost of primary fuel and secondary fuel for tariff determination shall be based on

actual weighted average cost of primary fuel and secondary fuel of the three preceding

months, and in the absence of landed costs for the three preceding months, latest procurement

price of primary fuel and secondary fuel for the generating station, before the start of the

Control period for existing stations and immediately preceding three months in case of new

generating stations shall be taken into account.

The landed cost of fuel for the month shall include price of fuel corresponding to the grade and

quality of fuel inclusive of royalty, taxes and duties as applicable, transportation cost by

rail/road or any other means, and, for the purpose of computation of energy charge, and in

case of coal/lignite shall be arrived at after considering normative transit and handling losses

as percentage of the quantity of coal or lignite dispatched by the coal or lignite supply

company during the month as given below:

Pithead generating stations: 0.2%

Non-pithead generating stations: 0.8%

Provided that in case of pithead stations if coal or lignite is procured from sources other

than the pithead mines, which is transported to the station through rail, transit loss of 0.8% shall

be applicable:

Provided further that in case of imported coal, the transit and handling losses

shall be 0.2%.

Fuel Price Adjustment

The Fuel Price Adjustment (FPA) applicable for calculation of Energy Charges is as follows:

For coal-based generating stations, FPA = A + B

Where,

FPA – Fuel price Adjustment for a month in Paise/kWh sent out;

A – Fuel price adjustment for Secondary Fuel oil in Paise/kWh sent out;

B – Fuel price adjustment for Coal in Paise/kWh sent out;

A={10/(100-ACn)}*SFCn*(Pom-Pos)

B={10/(100-ACn)}*[SHRn*{(Pcm/Kcm)

(Pcs/Kcs)}-

SFCn*{(Kom*Pcm/Kcm)

–

(Koms*Pcs/Kcs)}]

Where,

SFCn = Normative Specific Fuel Oil consumption in L/kWh;

SHRn = Normative Gross Station Heat Rate in kcal/kWh;

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

ACn =

Normative Auxiliary consumption, in absolute term (if normative aux is 10%,

then absolute value i.e. 10, to be considered;

Pom = Weighted average price of fuel oil on as consumed basis during the month in Rs.

/kL;

Kom = Weighted average Gross Calorific Value of fuel oils fired for the month in

kcal/Litre;

Pos = Base value of price of fuel oils as taken for determination of base energy charge in

the Tariff Order in Rs./kL;

Kos = Base value of Gross Calorific Value of fuel oils as taken for determination of base

energy charge in the Tariff Order in kcal/Litre;

Pcm = Weighted average price of coal procured and burnt during the month at the power

station in Rs. / MT;

Kcm = Weighted average Gross Calorific Value of coal fired at boiler front for the month

in kcal/kg;

Pcs = Base value of price of coal as taken for determination of base energy charge in the

Tariff Order in Rs. /MT;

Kcs = Base value of gross calorific value of coal as taken for determination of base

energy charge in the Tariff Order in kcal/kg.

For gas based thermal power plants, the Fuel Price Adjustment is calculated using the

following formula:

)

100

(

)]

(

)

[(

SHR

FPA





Where:

FPA = Fuel Price Adjustment for a month in Paise/kWh sent out;

SHRn = Normative Gross Station Heat Rate expressed in kcal/kWh;

ACn = Normative Auxiliary Consumption, in absolute term (if normative aux is 10%,

then absolute value i.e. 10, to be considered;

Pm = Weighted average price of Gas or Liquid fuel as per PSL for the month in Rs. /

1000 SCM of Rs./ KL or Rs./MT;

Km = Weighted average Gross Calorific Value of Gas or Liquid fuel for the month in

Kcal/ SCM or kcal/ Litre or kcal/kg;

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Ps = Base price of Gas or Liquid fuel as taken for determination of base energy charge in

tariff order in Rs. / 1000 SCM of Rs./kL or Rs./MT;

Ks = Base value of Gross Calorific Value of Gas or Liquid fuel as taken for determination

of base energy charge in tariff order in kcal/ SCM or kcal/Litre or kcal/ Kg.

Any variation in fuel prices on account of change in the Gross Calorific Value (GCV) of coal or gas

or liquid fuel shall be adjusted on a monthly basis on the basis of weighted average GCV of

coal or gas or liquid fuel in stock, received and burnt and weighted average landed cost

incurred by the Generating Company for procurement of coal, oil, or gas or liquid fuel, as the

case may be for a power station.

Initially, the Base value of price of fuel oils, price of coal incurred by the Generating Company/

generating station shall be taken based on actuals of the weighted average price of the three

preceding months and in the absence of weighted average landed costs for the three preceding

months, latest respective weighted average procurement price for the generating station,

before the start of the year.

Initially the Base value of gross calorific value of fuel oils and gross calorific value of coal incurred

by the Generating Company/ generating Station shall be taken based on actuals of the

weighted average gross calorific value of the three preceding months and in the absence of

weighted average gross calorific value for the three preceding months, latest weighted average

gross calorific value for the generating station, before the start of the year.

In its bills, the Generating Company shall separately indicate rate of energy charges at base price of

primary and secondary fuel specified by the Commission and the fuel price adjustment. No

separate Petition needs to be filed with the Commission for fuel price adjustment.

Under/Over Recovery on account of limestone/reagent consumption in case of stations having FGD

system shall be trued up annually as per actuals.

Load Despatch &Transmission Charges

The Generating Company shall be allowed to recover from beneficiaries net transmission and load

despatch charges payable to the Transmission Licensees(Central Transmission Utility, State

Transmission Utility, etc.) and System Operators (Regional Load Despatch Centre, State Load

Despatch Centre, etc.) for access to and use of the Inter-State transmission system, Intra-State

transmission system and availing load despatch services assuming maximum normative rebate

available from each source for payment of bills on presentation of bills in accordance with the

tariffs approved from time to time by Central Electricity Regulatory Commission and the

appropriate State Commission, as the case may be.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

A18. Norms of Operation for Hydro Power Generating Station

The norms of operation for hydro power station shall be as under:

Normative Annual Plant Availability Factor (NAPAF): The Normative Annual Plant Availability

Factor for hydro generating stations shall be determined by the Commission as per the

following criteria:

a) Storage and pondage type plants with head variation between full reservoir level (FRL) and

Minimum Draw Down Level (MDDL) of up to 8% and where plant availability is not

affected by silt: 90%;

b) Storage and pondage type plants with head variation between full reservoir level and

minimum draw down level of more than 8% and where plant availability is not affected by

silt: Plant-specific allowance to be provided in NAPAF for reduction in NAPAF and MW

output capability as reservoir level falls over the months. As a general guideline, the

allowance on this account in terms of multiplying factor may be worked out from the

projection of annual average of net head, applying the formula:

= (Average head/Rated head) +0.02

Alternatively, in case of a difficulty in making such projection, the multiplying factor may be

determined as:

= (Head at MDDL/Rated head) x 0.5 + 0.52

c) Pondage type plants where plant availability is significantly affected by silt: 85%;

d) Run of river type plants: NAPAF to be determined plant-wise, based on 10-day design

energy data, moderated by past experience where available/relevant.

A further allowance may be made by the Commission in NAPAF determination under special

circumstances, e.g., abnormal silt problem or other operating conditions, and known plant

limitations.

In case of a new hydroelectric project, the developer shall have the option of approaching the

Commission in advance for fixation of NAPAF based on the principles enumerated in Clause

0 and Clause 0 of these Regulations.

In case of Pumped storage hydro generating stations, the quantum of electricity required for pumping

water from down-stream reservoir to up-stream reservoir shall be arranged by the

beneficiaries duly taking into account the transmission and distribution losses, etc., up to the

bus bar of the generating station. In return, beneficiaries shall be entitled to equivalent energy

of 75% of the energy utilized in pumping the water from the lower elevation reservoir to the

higher elevation reservoir from the generating station during peak hours and the generating

station shall be under obligation to supply such quantum of electricity during peak hours:

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Provided that in the event of the beneficiaries failing to supply the desired level of energy

during off-peak hours, there will be pro-rata reduction in their energy entitlement from the

station during peak hours:

Auxiliary Energy Consumption (AUX): The norms for auxiliary energy consumption shall be as

under:

Sr.no.

Type of Station

Auxiliary Energy Consumption

Installed Capacity

above 200 MW

Installed Capacity

upto 200 MW

Surface

Rotating Excitation

0.7%

Static

1.0%

1.2%

Underground

Rotating Excitation

0.9%

Static

1.2%

1.3%

Based on the above, the norms of operation for the hydro generating station already in operation shall

be as follows:

Sikidiri Hydel Power Station:

Parameters

FY 2026-27

FY 2027-28

FY 2028-29

FY 2029-30

FY 2030-31

Normative Annual Plant Availability Factor (%)

75%

Auxiliary Consumption (%)

0.70%

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

A19. Methodology for calculation of Capacity Charge & Energy Charge for Hydro Generating

Stations

Computation and Payment of Capacity Charge and Energy

Charge for Hydro Generating Stations:

The Annual Fixed Cost of a Hydro generating station shall be computed, based on norms specified

under these Regulations, and recovered on monthly basis under capacity charge (inclusive of

incentive) and energy charge, which shall be payable by the Beneficiaries in proportion to

their respective allocation in the saleable capacity of the generating station, that is to say, in

the capacity excluding the free power to the home State:

Provided that during the period between the date of Commercial Operation of the first

Unit of the generating station and the Date of Commercial Operation of the generating station,

the Annual Fixed Cost shall provisionally be worked out based on the latest estimate of the

completion cost for the generating station, for the purpose of determining the Capacity Charge

and Energy Charge payable during such period.

The capacity charge (inclusive of incentive) payable to a hydro generating station for a calendar

month shall be

Capacity Charge (inclusive of incentive)=AFCx0.5xNDM/NDYx(PAFM/NAPAF) (in Rupees)

Where,

AFC: Annual Fixed Cost specified for the Year, in Rupees;

NAPAF: Normative Plant Availability Factor in percentage;

NDM: Number of Days in the month;

NDY: Number of Days in the Year;

PAFM: Plant Availability Factor achieved during the month, in Percentage:

Provided that the revenue recovered through capacity charges shall not exceed 50% of

the Annual Fixed Charges determined.

The PAFM shall be computed in accordance with the following formula:

PAFM=100xΣDCi / {N x IC x (1-Aux)} %

i=1

Where,

Aux: Normative auxiliary energy consumption in percentage;

DCi: Declared Capacity (in ex-bus MW) for the i^thDay of the month, which the station can

deliver for at least three (3) hours, as certified by the State Load Despatch Centre after the Day is

over;

IC: Installed Capacity (in MW) of the complete generating station;

N: Number of Days in the month.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

The Energy Charge shall be payable by every Beneficiary for the total energy scheduled to be supplied

to the Beneficiary, excluding free energy, if any, during the calendar month, on ex power plant

basis, at the computed Energy Charge Rate. Total Energy Charge payable to the Generating

Company for a month shall be:

Energy Charges= (Energy Charge Rate in Rs. / kWh) x {Scheduled Energy (ex-bus) for the month

in kWh} x (100 - FEHS) / 100.

Energy Charge Rate (ECR) in Rupees per kWh on ex-power plant basis, for a hydro generating station,

shall be determined up to three decimal places based on the following formula, subject to

Clause 0 of these Regulations:

ECR = AFC x 0.5 x 10 / {DE x (100 - AUX) x (100 - FEHS)}

Where,

DE: Annual Design Energy specified for the Hydro generating station, in MWh, subject to the

provision in Clause 0 of these Regulations;

FEHS: Free Energy for home State, as defined in Clause 0 of these Regulations.

In case the saleable scheduled energy (ex-bus) of a hydro generating station during a year is less than

the saleable design energy (ex-bus) for reasons beyond the control of the Generating Company,

the treatment shall be as per Clause0 of these Regulations, on an application filed by the

Generating Company.

Shortfall in energy charges in comparison to fifty percent of the Annual Fixed Cost shall be allowed

to be recovered in six equal monthly instalments:

Provided that in case actual generation from a hydro generating station is less than the

design energy for a continuous period of four years on account of hydrology factor, the

generating station shall approach the Central Electricity Authority with relevant hydrology

data for revision of design energy of the station.

Any shortfall in the energy charges on account of saleable scheduled energy (ex-bus) being less than

the saleable design energy (ex-bus) during the Financial Year, which was beyond the control

of the generating station and which could not be recovered during the said Financial Year

shall be recovered in accordance with Clause0of these Regulations.

In case the Energy Charge Rate (ECR) for a Hydro generating station, as computed in Clause 0 of

these Regulations, exceeds Rs. 0.80/kWh, and the actual saleable energy in a Year exceeds

{DE x (100 - AUX) x (100 - FEHS) / 10000} MWh, the Energy charge for the energy in

excess of the above shall be billed at Rs. 0.80/kWh only.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Computation and Payment of Capacity Charge and Energy Charge for

Pumped Storage Hydro Generating Stations:

The fixed cost of a pumped storage hydro generating station shall be computed on annual basis, based

on norms specified under these Regulations, and recovered on monthly basis as capacity

charge. The capacity charge shall be payable by the beneficiaries in proportion to their

respective allocation in the saleable capacity of the generating station, i.e., the capacity

excluding the free power to the home State.

The capacity charge payable to a pumped storage hydro generating station for a calendar month shall

be:

(AFC x NDM / NDY) (in Rupees), if actual Generation during the month is >= 75% of the

Pumping Energy consumed by the station during the month and{(AFC x NDM / NDY) x

(Actual Generation during the month during peak hours/75% of the Pumping Energy

consumed by the station during the month) (in Rupees)}, if actual Generation during the

month is < 75 % of the Pumping Energy consumed by the station during the month;

Where,

AFC: Annual Fixed Cost specified for the year, in Rupees;

NDM: Number of days in the month;

NDY: Number of days in the year:

Provided that there would be adjustment at the end of the year based on actual generation

and actual pumping energy consumed by the station during the year.

The energy charge shall be payable by every beneficiary for the total energy scheduled to be supplied

to the beneficiary in excess of the design energy plus 75% of the energy utilized in pumping

the water from the lower elevation reservoir to the higher elevation reservoir, at a flat rate

equal to the average energy charge rate of 20 paise per kWh, excluding free energy, if any,

during the calendar month, on ex-power plant basis.

Energy charge payable to the Generating Company for a month shall be:

= 0.20 x {Scheduled energy (ex-bus) for the month in kWh – (Design Energy for the month

(DEm) + 75% of the energy utilized in pumping the water from the lower elevation reservoir

to the higher elevation reservoir of the month)} x (1 - FEHS);

Where,

DEm: Design energy for the month specified for the hydro generating station in MWh

FEHS:Free energy for home State, in percentage:

Provided that in case the Scheduled energy in a

month is less than the Design Energy for the month plus 75% of the energy utilized in pumping the

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

water from the lower elevation reservoir to the higher elevation reservoir of the month, then the

energy charges payable by the beneficiaries shall be zero.

The Generating Company shall maintain the record of daily inflows of natural water into the upper

elevation reservoir and the reservoir levels of upper elevation reservoir and lower elevation

reservoir on hourly basis. The generator shall be required to maximize the peak hour supplies

with the available water including the natural flow of water. In case it is established that

generator is deliberately or otherwise without any valid reason, not pumping water from lower

elevation reservoir to the higher elevation during off-peak period or not generating power to

its potential or wasting natural flow of water, the capacity charges of the day shall not be

payable by the beneficiary. For this purpose, outages of the Unit(s)/station including planned

outages and the forced outages up to 15% in a year shall be construed as the valid reason for

not pumping water from lower elevation reservoir to the higher elevation during off-peak

period or not generating power using energy of pumped water or natural flow of water:

Provided that the total capacity charges recovered during the year shall be adjusted on

pro-rata basis in the following manner in the event total machine outages in a year exceeds

15%:

(ACC)adj = (ACC) R x (1- ATO)/0.85

Where,

(ACC)adj – Adjusted Annual Capacity Charges

(ACC) R – Annual Capacity Charges recovered

ATO - Total Outages in percentage for the year including forced and planned outages:

Provided further that the generating station shall be required to declare its machine

availability daily on day ahead basis for all the time blocks of the day in line with the

scheduling procedure of Grid Code.

The concerned Load Despatch Centre shall finalise the schedules for the hydro generating stations, in

consultation with the Beneficiaries, for optimal utilization of all the energy declared to be

available, which shall be scheduled for all Beneficiaries in proportion to their respective

allocations in the generating station.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Chapter-V

SCHEDULING, ACCOUNTING, BILLING AND PAYMENT

A20. Scheduling

The methodology for scheduling and dispatch for the generating station shall be as specified in Grid

Code as amended from time to time, as approved by the Commission.

A21. Metering and Accounting

Metering arrangements, including installation, testing and operation and maintenance of meters and

collection, transportation and processing of data required for accounting of energy exchanges

and average frequency on 15-minute Time Block basis shall be organised by the State

Transmission Utility in consultation with State Load Despatch Centre as per the Grid Code.

All concerned entities (in whose premises the special energy meters are installed), shall fully

cooperate with the State Transmission Utility/State Load Despatch Centre and extend the

necessary assistance by taking weekly meter readings and transmitting them to the State Load

Despatch Centre. The State Load Despatch Centre shall issue the Accounts for energy on

monthly basis as well as UI charges on weekly basis.

Unscheduled Interchange (UI) Charges

All variations between actual net injection and scheduled net injection for the generating stations, and

all variations between actual net drawl and scheduled net drawl for the Beneficiaries shall be

treated as their respective Unscheduled Interchanges (UI), charges for which shall be

governed by Jharkhand State Electricity Regulatory Commission (State Grid Code)

Regulations, 2008and subsequent amendments there of or any relevant Regulations specified

by the Commission from time to time.

A22. Billing and Payment of Charges

Bills shall be raised for Capacity Charge and Energy Charge on monthly basis by the Generating

Company in accordance with these Regulations, and payments shall be made by the

Beneficiaries directly to the Generating Company.

Payment of the Capacity Charge for a thermal generating station shall be shared by the Beneficiaries

of the Generating Station as per their percentage shares for the month in the installed capacity

of the generating station. Payment of capacity charge and energy charge for a hydro

generating station shall be shared by the Beneficiaries of the generating station in proportion

to their shares in the saleable capacity (to be determined after deducting the capacity

corresponding to free energy to home State as per Note 1 herein).

Note 1:

FEHS - Free Energy for Home State, in per cent shall be taken as 13% (not applicable for

generating stations of the State):

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Provided that in cases where the site of a Hydro Project is awarded to a developer (not

being a State controlled or owned Company), by a State Government by following a two-

stage transparent process of bidding, the “Free Energy” shall be taken as 13%, which shall

also include energy corresponding to 100 Units of electricity to be provided free of cost every

month to every Project affected family for a period of 10 Years from the Date of Commercial

Operation of the generating station.

Late Payment Surcharge

In case the payment of any bill for charges payable under these Regulations is delayed by a

Beneficiary beyond a period of 45 days from the date of billing a late payment surcharge shall

be levied by the Generating Company at the Bank Rate as on April 01 of the respective year

plus 200 basis points shall be applicable for the first month and for every month or part

thereof delay, the rate of late payment surcharge shall increase by 50 basis points, subject to a

maximum of Bank Rate as on April 01 of the respective year plus 500 basis point.

Provided that the rate of Late Payment Surcharge shall not exceed the rate specified in

the Power Purchase Agreement entered between the Generating Company and Distribution

Licensee.

Rebate

For payment of bills of the Generating Company (Capacity Charge and Energy Charges) within 5

days of presentation of bills by the Generating Company, a rebate of 1.50% shall be allowed.

Note 1: In case of computation of 5 days, the number of days shall be counted consecutively

without considering any holiday. However, in case the last day or 5th day is official holiday,

the 5th day for the purpose of Rebate shall be construed as the immediate succeeding working

day (as per the official State Government’s calendar, where the Office of the Authorized

Signatory or Representative of the Beneficiary, for the purpose of receipt or

acknowledgement of Bill is situated).

Note 2: As per example if a bill is issued on the 1st day of any month, the 5 days will be

counted from the 2nd day of the month, i.e. the 6th day of the month will be the end date for

availing the rebate.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

CHAPTER -VI

PROCEDURE FOR FILING OF ARR AND TARIFF

A23. Multi-Year Tariff (MYT) Filing Procedure

The Multi Year Tariff filing shall be submitted as per directions by the Commission in these

Regulations and in the manner as per the provisions of JSERC (Conduct of Business)

Regulations, 2024, as amended or replaced from time to time.

The Generating Company shall also submit the MYT filing in electronic format to the Commission.

The Generating Company shall file the MYT Petition and related documents for approval for the

Control Period in accordance with the MYT framework and the timelines specified in Section

A39of these Regulations failing which:

The Commission may issue the MYT order suo-motu;

The Commission may disallow the return on equity to the Generating Company.

Before the Start of the Control Period

The Generating Company shall file for the Commission’s approval, as per the Timelines specified in

Section A39, a Business Plan and MYT Petition in accordance with Clause 0 to Clause 0of

these Regulations.

Annual Tariff Filings for the Control Period

The Generating Company shall file a Petition for approval of tariff for each year of the Control

Period, as per the timelines specified in Section A39of these Regulations, before the

commencement of each year of the Control Period.

A24. Disposal of Application

The Commission shall process the filings made by the Generating Company in accordance with these

Regulations and JSERC (Conduct of Business) Regulations, 2024 and its amendments

thereof.

Based on the Generating Company’s filings, objections/suggestions from public and other

stakeholders, the Commission may accept the application with such modifications and/or such

conditions as may be deemed just and appropriate and issue, within 120 days of the receipt of

the Petition and after considering all suggestions and objections from public and other

stakeholders, an order containing, inter alia, trued up revenue and cost components for the

year preceding the Base Year, estimation of parameters for the Base Year and determination

of ARR and tariff for the Control Period.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

A25. Periodic Reviews

Review during the Control Period

To ensure smooth implementation of the Multi Year Tariff (MYT) Framework, the Commission may

undertake periodic reviews of Generating Company’s performance during the Control Period,

to address any practical issues, concerns or unexpected outcomes that may arise.

The Generating Company shall submit the Annual Performance Review report as part of annual

review

actual

performance

per

the

timelines

specified

the

Section A39of these Regulations to assess the performance vis-à-vis the targets approved by

the Commission at the beginning of the Control Period. This shall include annual statements

of its performance and accounts including audited/authenticated accounts, norms achieved

and the tariff worked out in accordance with these Regulations.

The Generating Company shall also submit the True up of ARR and corresponding tariff adjustments

as per the timelines specified in the Section A39of these Regulations. The revised estimates

shall be required to true-up the costs on account of uncontrollable variations, profit sharing

mechanism for exceeding the targets.

The Commission may also specify any modifications to the forecast of the Generating Company for

the remainder of the Control Period, with detailed reasons for the same.

Review at the end of the Control Period

Towards the end of the Control Period, the Commission shall seek to review whether the

implementation of the principles laid down in these Regulations has achieved their intended

objectives. While doing this, the Commission shall take into account, among other things, the

industry structure, sector requirements, consumer and other stakeholder expectations and

Generating Company’s requirements at that point in time. Depending on the requirements of

the sector to meet the objective of the Act, the Commission may revise the principles for the

next Control Period.

The end of the Control Period shall be the beginning of the next Control Period and the Generating

Company shall follow the same procedure unless specified otherwise by the Commission.

The Commission shall analyse the performance of the Generating Company with respect to the

targets set out at the beginning of the Control Period and based on the actual performance,

expected efficiency improvements and other factors prevalent, determine the initial values for

the next Control Period.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Chapter-VII

Miscellaneous Provisions

A26. Sharing of Clean Development Mechanism Benefits

The proceeds of carbon credit from approved Clean Development Mechanism project shall be shared

in the following manner:-

(i) 100% of the gross proceeds on account of CDM to be retained by the project developer in the

first year after the date of commercial operation of the generating station;

(ii) In the second year, the share of the Beneficiaries shall be 10% which shall be progressively

increased by 10% every year till it reaches 50%, where after the proceeds shall be shared in

equal proportion, by the Generating Company and the beneficiaries.

A27. Foreign Exchange Rate Variation

The Generating Company may hedge foreign exchange exposure in respect of the interest and

repayment of foreign currency loan taken for the generating station, in part or full at their

discretion.

If the Generating Company enters into hedging arrangement(s) based on its approved hedging policy,

the Generating Company shall communicate to the beneficiaries concerned, of entering into

such arrangement(s) within thirty days.

Every Generating Company shall recover the cost of hedging of Foreign Exchange Rate Variation

corresponding to the normative foreign debt, in the relevant Year on Year-to-Year basis as

expense in the period in which it arises and extra rupee liability corresponding to such foreign

exchange rate variation shall not be allowed against the hedged foreign debt.

To the extent the Generating Company is not able to hedge the foreign exchange exposure, the extra

rupee liability towards interest payment and loan repayment corresponding to the normative

foreign currency loan in the relevant Year shall be permissible, provided it is not attributable

to the Generating Company or its suppliers or contractors.

The Generating Company shall recover the cost of hedging and Foreign Exchange Rate variation on

Year-to-Year basis as income or expense in the period in which it arises.

A28. Recovery of Application Fee & Publication Expenses and Statutory

Charges

The Generating Company shall be allowed to recover the Statutory Charges imposed by the State and

Central Government such as electricity duty, water cess and payment to the pollution control

board in addition to Application Filing Fee and Publication Expenses, subject to prudence

check by the Commission. The Generating Company is required to furnish the details

regarding the same along with the Petition.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

A29. Issue of Orders and Practice Directions

Subject to the provisions of the Act and these Regulations, the Commission may, from time to time,

issue Orders and Practice Directions in regard to the implementation of these Regulations and

procedure to be followed on various matters, which the Commission has been empowered by

these Regulations to direct, and matters incidental or ancillary thereto.

Notwithstanding anything contained in these Regulations, the Commission shall have the authority,

either suo-motu or on a Petition filed by any interested or affected party, to determine the

tariff of any Applicant.

A30. Non-Compliance of Directions

State Load Despatch Centre may give such directions and exercise such supervision and control as

may be required for ensuring integrated operation of the power system for achieving

maximum economy and efficiency and every Licensee, Generating Company, sub-station and

any other person connected with the operation of the power system shall comply with such

directions.

If any Generating Company fails to comply with the directions issued, it shall be liable to a penalty as

per Section 146 of the Electricity Act 2003.

A31. Dispute Resolution

In case of dispute, any of the parties may make an application in accordance with the JSERC

(Conduct of Business) Regulations, 2024, as amended from time to time, including statutory

re- enactment thereof, for settlement of the dispute.

A32. Power to remove difficulties

In case of any difficulty in giving effect to any of the provisions of this Regulation, the Commission

may by general or special order, issue appropriate directions to Generating Company to take

suitable action, not being inconsistent with the provisions of the Act, which appear to the

Commission to be necessary or expedient for the purpose of removing the difficulty.

The Generating Company may file a Petition before the Commission and seek suitable orders to

remove any difficulties that may arise in implementation of these Regulations.

A33. Power of relaxation

The Commission may in public interest and for reasons to be recorded in writing, relax any of the

provision of these Regulations.

A34. Interpretation

If a question arises relating to the interpretation of any provision of these Regulations, the decision of

the Commission shall be final.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

A35. Savings of Inherent Powers of the Commission

Nothing contained in these Regulations shall limit or otherwise affect the inherent powers of the

Commission from adopting a procedure, which is at variance with any of the provisions of

these Regulations, if the Commission, in view of the special circumstances of the matter or

class of matters and for reasons to be recorded in writing, deems it necessary or expedient to

depart from the procedure specified in these Regulations.

A36. Enquiry and Investigation

All enquiries, investigations and adjudications under these Regulations shall be done by the

Commission through the proceedings in accordance with the provisions of the JSERC

(Conduct of Business) Regulations, 2024, as amended from time to time.

A37. Power to amend

The Commission may from time to time add, vary, alter, suspend, modify, amend or repeal any

provisions of this Regulation.

A38. Savings

Nothing in these Regulations shall be deemed to limit or otherwise affect the inherent power of the

Commission to make such orders as may be necessary to meet the ends of justice or to

prevent abuse of the process of the Commission.

Nothing in these Regulations shall bar the Commission from adopting in conformity with the

provisions of the Act a procedure, which is at variance with any of the provisions of these

Regulations, if the Commission, in view of the special circumstances of a matter or class of

matters and for reasons to be recorded in writing, deems it necessary or expedient for dealing

with such a matter or class of matters.

Nothing in these Regulations shall, expressly or impliedly, bar the Commission dealing with any

matter or exercising any power under the Act for which no Regulations or Regulations have

been framed, and the Commission may deal with such matters, powers and functions in a

manner it thinks fit.

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

A39. Summary of Timeline

Sl.

No.

Description

Filing of the

Petition by the

Generating

Company

Furnishing additional

information as sought by

the Commission

Disposal of the Petition

by the Commission

Business Plan for the Control

Period and MYT Petition for

the Control Period for FY 2026-

27 to FY 2030-31including

Tariff for each year of the

Control Period

November 30,

2025

Within 15 days of issuance

of letter regarding the

information required

Within 120 days of

acceptance of the filing

True-Up for the previous year,

Annual Performance Review

for the current year and ARR &

Tariff Determination for the

next year of the Control Period

November 30,

of the financial

year for which

APR has been

sought

Within 15 days of issuance

of letter regarding the

information required.

Within 120 days of

acceptance of the filing

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Appendix-I: Depreciation Schedule

Asset Description

Straight Line

Depreciation(%)

Land owned under full ownership

0.00

Land held under lease:

For investment in the land

2.67

For cost of clearing the site

2.67

Land for reservoir in case of hydro generating station

2.67

Assets Purchased New:

Plant & Machinery in generating stations

Hydro electric

4.22

Steam electric NHRB & waste heat recovery boilers

4.22

Diesel electric and gas plant

4.22

Cooling towers & circulating water systems

4.22

Hydraulic works forming part of the Hydro-generating stations

Dams, Spillways, Weirs, Canals, Reinforced concrete flumes andsiphons

4.22

Reinforced concrete pipelines and surge tanks, steel pipelines, sluice gates, steel

surge tanks, hydraulic control valves and hydraulic works

4.22

Building & Civil Engineering works

Offices and showrooms

2.67

Containing thermo-electric generating plant

2.67

Containing hydro-electric generating plant

2.67

Temporary erections such as wooden structures

100

Roads other than Kutcha roads

2.67

Others

2.67

Transformers, Kiosk, sub-station equipment & other fixed apparatus (including

plant foundations)

Transformers including foundations having rating of 100 kVA and over

4.22

Others

4.22

Switchgear including cable connections

4.22

Lightning arrestor

Station type

4.22

Pole type

4.22

Synchronous condenser

4.22

Batteries

12.77

Underground cable including joint boxes and disconnected boxes

4.22

Cable duct system

4.22

Overhead lines including cable support

Lines on fabricated steel operating at terminal voltages higher than 66 kV

4.22

Lines on steel supports operating at terminal voltages higher than 13.2 kV but not

exceeding 66 kV

4.22

Lines on steel on reinforced concrete support

4.22

Lines on treated wood support

4.22

Jharkhand Gazette (Extraordinary) Wednesday 15^th October, 2025

Asset Description

Straight Line

Depreciation(%)

Meters

12.77

Self-propelled vehicles

12.77

Air Conditioning Plants

Static

4.22

Portable

7.60

Furniture and Furnishing

Office furniture and furnishing

6.33

Office equipment

6.33

Internal wiring including fittings and apparatus

6.33

Street Light fittings

6.33

Apparatus let on hire

Other than motors

7.60

Motors

4.22

Communication equipment

Radio and high frequency carrier system

6.33

Telephone lines and telephones

6.33

Fibre Optic

6.33

I.T Equipment and software

15.00

Any other assets not covered above

4.22(or as approved

by the Commission

considering asset life

and residual value)

By Order of the Commission,

R.P.Nayak,

Secretary

Jharkhand State Electricity Regulatory Commission

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Printed & Published by the Superintendent of Jharkhand Government Press, Doranda, Ranchi.

Jharkhand Gazette (Extraordinary) 472-- 50.