#capitalcost

The Power Tariff case for NTPC's 1,980 MW Barh Stage I remains open as CERC seeks additional evidence supporting a revised Capital Cost of Rs 21,312.11 crore against an original investment approval of Rs 9,567.72 crore. NTPC must provide package-level escalation, reasons for cost increases and auditor-certified reconciliation with its balance sheet. The Commission has also requested support for expenditure claimed under welfare and other heads. Beneficiary utilities can respond before NTPC files its rejoinder. The process matters because incurred expenditure does not automatically become recoverable regulated capital. CERC must first determine whether costs are prudent and attributable before they can affect fixed charges recovered from purchasing utilities. The revised estimate therefore remains a claim under examination, not an approved tariff base.