Power Minister explains Electricity duty amendment bill

By our correspondent, Gandhinagar, 26 March 2013

Following are the highlights of Energy Minister Saurabh Patel’s speech in Gujarat assembly after tabling Gujarat Electricity Duty Amendment bill which was passed with majority today.

-Those major industrial houses that generate power on their own and utilize it will need to pay 55 paise per unit instead of existing 40 paise. This will give Rs 250 crore revenue to state government. Earlier there were different duties for those generating power on their own, and those procuring power from distribution company. Now for both types of power consumers, duty is same.

-The word ‘manufactures’ has been defined in this amendment. This step will lower down disputes regarding benefit of electricity duty.

-New industrial units were getting benefit of waiver of electricity duty for five years. Now this benefit will be given for expansion and diversification too.

-This amendment will provide benefit to those purchasing power from non conventional energy sources too.

-Gujarat government earns Rs 4200 crore revenue through electricity duty per year. From year 2000 to today, government has given Rs 1200 crore waiver.

-Industrial units will not have to put sub-meters for offices now after this amendment.

-State government or central government corporations/boards will also get electricity duty waiver for usage of power for water supply, gutter etc purposes. At present, Municipal Corporation Panchayat etc are getting such benefit.

-Seven categories of electricity duty are lowered down to four in the cases of consumers sourcing power from licensee.