Discoms plea to retain depreciation value upheld | india | Hindustan Times
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Discoms plea to retain depreciation value upheld

Supreme Court on Thursday upheld the plea of power discoms to retain their depreciation value at 6.69 per cent and not 3.75 per cent.

india Updated: Feb 15, 2007 13:34 IST

In a judgement that could further escalate the electricity tariff in the capital, the Supreme Court on Thursday upheld the plea of power discoms to retain their depreciation value at 6.69 per cent and not 3.75 per cent as ordered by the Delhi Electricity Regulatory Commission.

A Bench of Justice SH Kapadia and B Sudarshan Reddy dismissed the DERC appeal which had challenged the Appellate Tribunal of Electricity's (ATE) order which had held that the depreciation should be fixed only at 6.69 per cent.

The judgement in effect means that the government would have to pump an estimated additional Rs 300 crore for meeting the enhanced depreciation value for the power sector companies.