Today in New Delhi, India
Oct 18, 2018-Thursday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Captive power plants get major cess relief

THE STATE Assembly today unanimously passed the Bill seeking to reduce by half the cess on power produced from captive power plants. Power produced at captive power plants is taxed at the rate of 20 paisa per unit as of now.

india Updated: Jan 05, 2006 13:48 IST

THE STATE Assembly today unanimously passed the Bill seeking to reduce by half the cess on power produced from captive power plants. Power produced at captive power plants is taxed at the rate of 20 paisa per unit as of now.

Dr Govind Singh of the Congress and Omprakash Purohit of the BJP, who spoke on the Bill, said that captive power policy had failed to attract industrialists in Madhya Pradesh primarily because of excessive cess but its reduction by half would make it an attractive proposition for the industrialists to have their own captive power plant.

This would also bridge the gap between demand and supply, they said. Dr Singh suggested that the cess should be further reduced to five paisa per unit. Energy Minister Kailash Vijayvargiya said that the amendment bill was brought to bring cess on power produced at captive power plants at par with the cess levied in other states.

In some states, no cess is charged on captive power, he said. But in Madhya Pradesh, a cess of 20 paisa was being collected leading to poor response to efforts for promoting production of captive power, he said.

First Published: Jan 05, 2006 13:48 IST