In Brief
Damodar Valley Corporation, a multi-utility statutory corporation, challenged the dismissal of its appeal against the Central Electricity Regulatory Commission's tariff order. The core disputes were whether the appellant deserved separate interest on capital under Section 38 of the DVC Act beyond its allocated return on equity and loan interest, and whether cumulative depreciation should reduce the loan component for interest calculation. The Supreme Court held that the appellant's debt-equity ratio (50:50 for old projects, 70:30 for newer ones) had become final and that capital recovery through return on equity (14%) and interest on loans already satisfied Section 38 entitlements. On depreciation, the Court refused to reopen a methodology that the appellant had not contested in the first round and which was now final. The appeal was dismissed.
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