Rework on Insulation of Steam Pipeline

Sumit Agarwal (proprietor) (197 Points)

27 February 2024  

Dear Experts,
In our Company, we had capitalised steam pipeline for 50CR 7 years back. Now the Insulation of steam pipeline needs to be replaced which will cost around 6 Cr. Can I capitalise this cost of 6 Cr on the steam pipeline assets, considering that the same will last for next 4-5 years and also that without this Insulation work steam line may not perform.

Thanks & Regards