Reforms help GEB boost revenue generation

The state has reason to cheer. Streamlining administrative procedures, introducing reforms and professionalism has resulted in better revenue generation for the state in the power sector, minister of state for energy and petrochemicals, Saurabh Patel, said here today.

He added that these processes have also provided momentum to the development process in the state.

In spite of the cost of power being highest in Gujarat as compared to other states in the country, the state has already achieved the national target of per capita electricity consumption of 1,000 units set for the year 2012 in the recently announced National Energy Policy.

By 2012, the per capita electricity consumption in Gujarat is expected to be between 1,500 and 1,600 units, the minister said.

"The government of Gujarat is committed to reduce the electricity duty to make power cheaper. So far we have already provided over Rs 700 crore of relief in electricity duty. The state government is striving to make the tax structure simpler and more rational in order to accelerate the development of trade and industry in the state while maintaining the tax revenues of the state,'' said Patel.

The government has already provided relief in a phased manner in the last few years to the various consumers of electricity. A relief of Rs 58 crore was given by a way of reduction in the rate of electricity duty.

This benefited around 65 lakh domestic consumers. Sales tax on electricity in force for 18 years was also abolished in April 2002, giving a relief of Rs 260 crore benefiting about 90 lakh consumers.

Similarly, a relief of Rs 62 crore was given to 12 lakh consumers belonging to commercial and residuary categories and over 6.5 lakh farmers have been given relief by abolishing duty on electricity, used for irrigation in force for 22 years, said the statement.