In Brief
The Damodar Valley Corporation appealed against the Appellate Tribunal's dismissal of its challenge to a revised tariff order. The Court held that DVC had already received a fair return on capital through a debt-equity ratio (50:50 for old projects, 70:30 for new ones) fixed in the first appellate round and which had become final. The recovery comprised two elements: return on equity at 14% and interest on the loan portion. The Court rejected DVC's claims that it deserved additional interest on capital under section 38 of the DVC Act (finding it already fully serviced) and that cumulative depreciation could not reduce the loan component (finding this objection should have been raised in the first round and was now barred by finality). The appeal was dismissed.
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