Extra power tariff on industries in Maharashtra

The Maharashtra Cabinet announced a 0.04 paise tax on every unit of power consumed by industrial and commercial consumers yesterday.

This amount will be diverted to a green energy fund (GEF) which will be used to fund infrastructure of wind power projects. The move is expected to generate Rs 90 crore annually.

Addressing mediapersons, Maharashtra chief minister Sushilkumar Shinde said the tax is part of the state's new policy which seeks to stop fiscal incentives for power projects that utilise non-conventional sources of fuel. Instead, the state will help create the infrastructure needed for the projects.

"The tariff plan set up by the Maharashtra Electricity Regulatory Commission will be applicable for all power projects which use non-conventional fuel sources. However, the state will utilise the GEF to bear the coast of setting up access roads and the cost of power transmission at these projects," Shinde said.

Principal secretary Jayant Kawle said the GEF already has a corpus of Rs 500 crore and it is estimated to collect an additional Rs 90 crore per annum through the new tax. These consumers already pay the highest power tariff in the state.

The new policy also exempts for five years the power surcharge levied upon captive power generated for private utilisation.

"The GEF will be utilised for promoting primary infrastructure for power projects utilising renewable and non-conventional sources of fuel that include wind, solar and co-generation plants set up by sugar factories.

"Similarly, the GEF will also fund the equity capital to the extent of 11 per cent of co-operative power projects in the state," Shinde added.