Boost to state power firms, amnesty for sick industries | mumbai | Hindustan Times
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Boost to state power firms, amnesty for sick industries

mumbai Updated: Mar 27, 2012 01:38 IST
Dharmendra Jore

The state has announced perks for the micro, small and medium industries. Finance minister Ajit Pawar on Monday promised concessions in electricity tariff, value added tax and interest subsidy for industries.

He also announced an amnesty scheme for sick industries. As per the scheme, the government will charge only 50% interest and penalty on the unpaid electricity bills of ailing industries. If such units pay the entire arrears (the original bill) and 20% interest by June 30, the remaining interest and penalty will be waived.

However, industries using natural gas sources from other states will have to pay more because of a new entry tax. Gas-fired power plants in Uran and Dabhol will have to pay more for fuel and are likely to pass this extra cost on to consumers.

Pawar, who also heads the energy department, announced a capital of Rs1,500 crore for state generation company Mahagenco, which plans to increase its production to meet the government’s aim to become a power cut-free state by this December.

The state’s distribution arm, Mahavitaran, will get about Rs 700 crore. The government has also promised timely payment of subsidies to Mahavitaran so that it is not hampered financially.

Pawar has set aside Rs1480 crore as industrial promotion subsidy for 59 new mega projects, which have brought in an investment Rs 79,462 crore and will create 38,735 jobs. A Rs90.83 crore grant has been made to implement the new textile policy.