Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-MH-E-08072025-264448
EXTRAORDINARY
PART II-Section 3-Sub-section (ii)
PUBLISHED BY AUTHORITY
NEW DELHI, MONDAY, JULY 7, 2025/ASHADHA 16, 1947
No. 2954]
DEPARTMENT OF ATOMIC ENERGY
(Power section)
NOTIFICATION
Mumbai, the 4th July, 2025
S.O. 3021(E).—In exercise of the powers conferred by clause (b) of Sub-section (1) of Section 22
of Atomic Energy Act, 1962 (33 of 1962) read with Sub-section (1) of Section 45 of the Electricity Act,
2003 the Central Government in consultation with the Central Electricity Authority hereby determines the
norms as given below in accordance with which the tariff for sale of electricity by the Atomic Power
Stations to the State Electricity Boards and to other persons shall be determined:
1.0 Technical Norms:
1.1 Installed Capacity:
The realistic achievable capacity of the power station approved by the Atomic Energy Commission
shall be adopted.
1.2 Plant Load Factor:
| Station(s) | PLF |
| :--------- | :---- |
| TAPS 1-2 | 68.5% |
| RAPS 2-4 | 68.5% |
| MAPS 1-2 | 68.5% |
| NAPS 1-2 | 68.5% |
| KAPS 1-2 | 72.5% |
| KGS 1-2 | 68.5% |
| KGS 3-4 | 72.5% |
| RAPS 5-6 | 72.5% |
| TAPS 3-4 | 68.5% |
| KKNPP 1-2 | 70% |
| KKNPP 3-4 | 80% |
| 700 MWe | 72.5% |
To be reviewed once in two years.
1.3 Stabilisation Period:
There shall be no stabilisation period for the Atomic Power Stations.
1.4 Auxiliary Consumption:
Auxiliary power consumption as percentage of normative generation for various types of reactors
shall be taken as follows:
| Type of Reactor | Percentage of normative generation |
| :----------------------------------------- | :-------------------------------- |
| BWR - TAPS 1&2 | 9% |
| PHWR 220 MWe (w/o cooling towers) | 10.5% |
| PHWR 220 MWe (with cooling towers) | 11.75% |
| PHWR 540 MWe & 700 MWe (w/o cooling towers) | 10.2% |
| KKNPP 1-6 (1000 MWe LWRs) | 7.8% |
| PHWR (700 MWe) with cooling towers | 11.25% |
1.5 Annual fuel recovery charge (AFRC):
Annual fuel recovery charge in case of PHWR shall be so fixed that the present value of charges
over a period of fifteen years at a discount rate of 12% shall be equal to the value of initial half
charge of fuel. The AFRC shall be re-fixed for the half core of the fuel, whenever fresh fuel is
loaded, say after EMCCR/EMFR etc. for KKNPP/LWRs, AFRC shall be fixed such that the
present value of charges over a period of fifteen years at a discount rate of 12% to be equal to the
value of two-third charge of initial load of fuel.
1.6 Fuel consumption:
| Type of Reactor | Fuel Consumption |
| :------------------------------------ | :--------------- |
| BWR - TAPS | 134 MWD/MU |
| PHWR (200/220/540/700 MWe) | 25 kg/MU |
| LWR KKNPP1-2 (1000 MWe) | 128 MWD/MU |
Fuel price shall be notified by DAE every year. The fuel cost shall be computed by multiplying
the fuel consumption rate as given above and the weighted average price of fuel available at the
station at any point of time. The fuel consumption charge will be subject to adjustment for variation
in the fuel price. Variation in effective tariff rate as a result of such adjustment charges shall not be
deemed to be change or revision of tariff.
1.7 Heavy Water Inventory (per reactor):
| Type of Reactor | Heavy Water Inventory (per reactor) |
| :------------------------------- | :---------------------------------- |
| PHWR-220 MW Units | 287.50 tonnes |
| PHWR – 540 MW / 700 MWe Units | 570 tonnes |
1.8 Heavy Water Lease charges:
Heavy water lease charges on the heavy water inventory held by the plant as given at Para 1.7 will
be payable at the rate notified by DAE from time to time. They are charged in a manner so that
lease charges are recovered in the form of equated annual instalments (EAI). Heavy water lease
charges will be subject to adjustment towards variations in the prices and variation in the effective
tariff as a result of such adjustments shall not be deemed to be revision of the tariff.
1.9 Heavy Water Make Up norm:
For all Pressurised Heavy Water Reactors – 2 tonnes per reactor per annum. The price of heavy
water for make up shall be as notified by DAE from time to time. Heavy Water makeup charge will
be subject to adjustment towards variations in the prices and variation in the effective tariff as a
result of such adjustments shall not be deemed to be revision of the tariff.
1.10 Operation and Maintenance (O&M) charges and its escalation:
The normative O&M charges in Lakh/MWe for the year 2022-23 shall be as given below:
| Type of Reactor | O&M Charges |
| :---------------- | :---------- |
| BWR - TAPS 1-2 | 75.44 |
| PHWR - 220 MWe | 63.53 |
| PHWR-540 MWe | 36.16 |
| PHWR-700 MWe | 27.89 |
| LWR-1000 MWe | 27.45 |
The normative O&M charges in subsequent years shall be increased at the rate of 6% per annum.
The water charges, cess, levies and insurance charges shall be chargeable at actual and will be
allowed separately.
1.11 Special Incentive for the nuclear power plants, which have operated for 30 years:
Special Incentive of 50 paise/kWh shall be included in the tariff, for the nuclear power plants,
which have operated for 30 years and there are no components in tariff for the sale of the power
through these units, towards initial debt deployed at the time of construction of the plant.
2.0 Financial norms:
2.1 Capital cost:
The actual expenditure incurred on completion of the project and subsequent capital expenditure
incurred upto fixation of / revision of tariff, shall be the criteria for fixation of tariff. If actual
expenditure exceeds the approved project cost, the excess shall be considered for fixation of tariff
after approval of the same by the Government of India.
2.2 Debt Equity Structure:
Debt Equity Structure for future PHWRs shall be in 70:30 ratio. For units in operation and projects
under construction, the funding structure already fixed may be adopted. For future projects other
than PHWRs, the debt equity ratio is to be decided by the Government on a case-to-case basis,
depending on the maturity of technology and the constraints of the financing arrangement. In case,
in a future project, the actual equity exceeds 30% of the capital expenditure as defined in Para 2.1,
the ROE should be applicable only on the notional equity i.e. 30 % of the capital and excess
amount will be treated as notional loan at the same interest rate as of debt component of the
capital.
2.3 Return on Equity (ROE):
For current operating plants (commissioned before April 1, 2022) – 15.50%
For new power projects commissioned after April 1, 2022
generating company can adopt a constant RoE of 15.5% throughout the operating life or can adopt
a variable RoE profile over a PPA period, starting with lower RoE during initial years gradually
increasing and later decreasing, such that the PV of the RoE over the PPA period remains same as
the Present Value (PV) of the constant RoE of 15.5% over the same period.
The variable RoE profile shall be determined based on following formula.
The mathematical formulation can be,
```
22 22
1 RoE i
15.5 * ∑ ------------- = ∑ -----------
i=1 (1 + g) i i=1 (1+g)i
```
RoE i = RoE to be charged for the year "i"
Where, discounting rate, is the G-sec rate of RBI for 10 years previous to commissioning of the
project and 'n' is the PPA period.
(i) The equity capital is defined as below:
"Equity capital for stations for the purpose of fixation of tariff shall be reckoned as the total
cumulative investment less the borrowed funds used for the station viz., paid up and subscribed
capital and internal surplus utilized for the station."
(ii) Equity shall not be reduced irrespective of whether the capital assets have been depreciated
or not.
2.4 Interest rate on Debt funds:
(i) Interest shall be the weighted average rate of interest applicable for the year calculated on
the loan port-folio at the beginning of the year. The repayment of loan for each year shall be
deemed to be equal to the capital cost recovery allowed for that year.
(ii) In the case of perpetual loan from the Government of India, the loan amount shall not be
reduced for computation of tariff as the loan is in perpetuity.
(iii) The interest for the Government loan shall be computed at the rates notified by the
Government from time to time. Any change in the interest rates for the Government loan, if notified
by the Government, will be automatically effected in the tariff prospectively through an adjustment
by the respective Atomic Power Station. Variations in the effective tariff as a result of the revision
in interest rates as notified by the Government shall not be deemed to be a revision of the tariff.
2.5 Working Capital norms:
(i) Fuel inventory will be equivalent to 6 months fuel consumption in case of Pressurised
Heavy Water Reactors and fuel requirement of one reload for BWRs and LWRs.
(ii) Stores inventory will be equivalent to 2% of the current capital cost. Current capital cost
is the cost of latest completed project of similar capacity and design escalated to the year
of fixation/revision of tariff on the basis of weighted price index of CPI and WPI in the
ratio of 50:50.
(iii) Operation and Maintenance expenditure for one month.
(iv) Sundry debtors: Receivables equivalent to 45 days average billing for sale of electricity.
This provision should be given effect in all future PPAs for payment of the bills and
considered for working capital thereafter (for existing PPAs the norm may continue to be
60 days till their validity period).
2.6 Interest on Working Capital:
For fuel inventory, Interest at the rate of 12% is to be considered and for other components, lending
rate quoted by State Bank of India for medium term loans, which is the rates paid by NPCIL, is to
be considered.
2.7 Foreign Exchange Rate Variation (FERV) and Hedging Costs:
Actual cost of hedging or if hedging has not been resorted to, FERV shall be allowed as pass
through.
2.8 Depreciation (Capital Cost Recovery Component):
For the projects which have commenced commercial operations and also existing operating
stations, 3% of the capital cost per annum. For new projects commissioned after April 2022 and
which are yet to commence commercial operation, 2.33% of the capital cost p.a. for a period of 30
years, thereafter, the balance recovery to be spread over remaining economic life of the plant.
2.9 Decommissioning levy:
Decommissioning levy shall be applicable at the rate of 12 paise/kWh.
2.10 Provision for taxation:
Actual tax paid by NPCIL, shall be recovered from all the beneficiary DISCOMs/ customers, in
proportion of the energy units supplied to them, during the year for which the tax pertains.
3.0 General:
3.1 In respect of infirm power i.e. sale of electricity prior to commercial operation of the unit any
revenue from such sale shall be taken as reduction in capital expenditure and not as net revenue.
3.2 In case an Atomic Power Plant is permitted by the competent Government to supply electricity
directly to a consumer in terms of clause (b) of sub-section 1 of Section 22 of the Atomic Energy
Act, 1962, such sale shall be at mutually negotiated rates, agreed upon between the generating plant
and the other person(s) subject to the approval of the competent Authority.
3.3 The revised tariffs shall be effective from 1st April 2022 and earlier norms notified vide
Notification No.4/8/1/2017-Power/14991 dated November 20, 2017 will remain applicable till
March 31, 2022.
3.4 The tariff shall be revised once in 5 years.
3.5 The tariff shall be determined stage-wise or unit-wise or for the station.
[F.No.- 14/1/2024-Power/Vol.II]
PS KARTHIGEYAN, Jt. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
Digitally signed by GORAKHA NATH
Date: 2025.07.08 11:55:44+05'30'
GORAKHA NATH YADAVA YADAVA