Annual Escalation factor for ARR computation and computation of indexed SOR by BOT operators governed under Tariff Guidelines,2019 and previously governed by erstwhile Tariff Guidelines 2005.

Annual Escalation factor for ARR computation and computation of indexed SOR by BOT operators governed under Tariff Guidelines,2019 and previously governed by erstwhile Tariff Guidelines 2005.

Escalation_factor_April_2020.pdf

As per the clauses 2.8 and 2.12 of the Tariff Policy, 2019, the Authority is
required to announce the indexation factor considering the WPI occurring between
1 January 2019 and 1 January of the relevant year i.e. 1 January 2020 so as to enable
the BOT operators governed under the Tariff Guidelines 2019 and previously governed
by the Tariff Guidelines 2005 for computation of indexed ARR and to draw the indexed
SOR to be applicable during the year 2020-21.

The WPI occurring between the relevant dates was ascertained from the
Ministry of Commerce and Industry, Government of India. Considering variation in WPI
occurring between 1 January 2019 and 1 January 2020, the Authority has approved the
following:

(i). Annual indexation of 1.88% (at 100% of the WPI variation) for computation
of indexed ARR as per Clause 2.8. of the Tariff Guidelines 2019 for tariff
revision proposal filed in year 2020-21.

(ii). Annual indexation of 1.13% (at 60% of the WPI variation) for indexation of
SOR to arrive at the indexed SOR by BOT operators as per Clause 2.12. of
the Tariff Guidelines 2019. The indexed SOR shall be effective from 1 May
2020 and shall be valid till 30 April 2021.

By | 2020-04-12T14:11:34+00:00 April 12th, 2020|Circulars|0 Comments

About the Author: