23. Treatment of Depreciation.

{
    "act_title": "Bihar Electricity Regulatory Commission (Multi Year Distribution Tariff) Regulations, 2015",
    "act_slug": "bihar-electricity-regulatory-commission-multi-year-distribution-tariff-regulations-2015",
    "section_label": "Section",
    "section": {
        "number": "23",
        "title": "23. Treatment of Depreciation.",
        "chapter": null,
        "content": "(b) Depreciation shall not be allowed on assets funded by capital subsidies, consumer contributions or grants.\n(c) Depreciation shall be calculated annually on the basis of assets capitalized and put to use based on the straight line method over the useful life of the asset and at the rate specified by the Central Electricity Regulatory Commission.\n(d) 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.\n(e) Depreciation shall be charged from the first year of commercial operation of the asset.\n(f) A provision of replacement of assets shall be made in the capital investment plan.",
        "footnote": "",
        "is_definition": false,
        "sort_order": 24
    },
    "prev_section": "22",
    "next_section": "24"
}