(a) whether power generation companies in private and public sectors in the country
which have been permitted by the Government to earn 16% profit on their capital cost;
and
(b) if not, the percentage of profit they are permitted to earn thereon?
(a) whether power generation companies in private and public sectors in the country
which have been permitted by the Government to earn 16% profit on their capital cost;
and
(b) if not, the percentage of profit they are permitted to earn thereon?
THE MINISTER OF STATE IN THE MINISTRY OF POWER ( SHRIMATI JAYAWANTI MEHTA )
(a) & (b) : The two part tariff notification issued by the Government of India (GOI)
on 30.3.1992 in exercise of powers conferred by sub-section (2) of Section 43A of the
Electricity (Supply) Act, 1948, allows a return of upto 16% on equity (paid up and
subscribed) at normative levels of operation i.e. 68.5% Plant Load Factor (PLF) to
generating companies in the private sector for power projects set up by them. For
generation beyond this level, incentive at negotiated rates subject to a ceiling of 0.7% of
equity (paid up and subscribed), for each percentage increase in PLF is allowed.