Amendment status not verified — confirm the current text below against the official source.
(1) The Capital Cost of the asset approved by the Commission shall be the basis for calculation of depreciation. The salvage value of the asset shall be considered as 10% and depreciation shall be allowed up to a maximum of 90% of the capital cost of the asset. (2) Depreciation rate of 5.28% per annum for first 13 years and remaining depreciation to be spread over the remaining useful life of the RE assets considering the salvage value of the project as 10% of project cost shall be considered. (3) Depreciation shall be charged from the first year of commercial operation. Provided that if the commercial operation of the asset was only for part of the first year of commercial operation, depreciation shall be charged on pro rata basis.