The Hindu : Cabinet nod for `electricity duty' on captive generation

Online edition of India's National Newspaper
Tuesday, Jun 24, 2003

Southern States

Southern States - Andhra Pradesh-Hyderabad

Cabinet nod for `electricity duty' on captive generation

By Our Special Correspondent

Hyderabad June 23. Collection of `electricity duty' on captive generation and consumption at 25 paise per kwhr, constitution of an Andhra Pradesh Natural Gas Development Council (APNGDC) headed by the Chief Minister for proper utilisation of natural gas, the Tourism Department being made the nodal agency for clearing tourism projects, and an additional Rs. 5.43 crores to Rajahmundry, Kovvur and Narsapur for pushkaram works were some of the major decisions taken by the Cabinet at its meeting here today.

The levy of electricity duty on captive generation and consumption is a new feature on which the AP Transco achieved a consensus with the captive units and consumers after discussions recently at the instance of the Government. The Cabinet approved the draft ordinance prepared amending the AP Electricity Duty Act for the purpose.

At a press conference later, the Information and Public Relations Minister, S. Chandramohan Reddy, however, announced exemption from the duty to three categories of consumers -- industries covered by the HT IB category as per the AP Electricity Regulatory Commission order such as ferro alloy units, which account for high consumption, small capacity captive consumers up to 1,000 KVA, agriculture, railways and Central Government.

The Minister said that the APNGDC being formed on the recommendations of the T.L. Shankar Committee on utilisation of natural gas, would also initiate steps for taking up related issues with the Centre like polices regarding natural gas, pipeline, pricing, revision of royalty and sales tax, floating of a fund for setting up a State gas grid through a joint venture, a regulatory body for orderly development, a task force for hydrocarbon highway for conveyance of gas through a trunk pipeline, and mega chemical complex.

By the third major approval, a `single window' committee headed by the Tourism Department's Principal Secretary would clear the tourism projects based on rules finalised by today's meeting. For clearance at the district level, a separate committee would be formed headed by the Collector.

Answering questions, Mr. Reddy said apart from Rajahmundry and the two other aforesaid coastal towns, Adilabad, Karimnagar, Nizamabad and Khammam would also be given additional funds for Pushkaram works.

The Council of Ministers also gave its stamp of approval to allotment of 1.5 acres of land at Madhapur to Software Technology Park of India for construction of a campus, guarantee to Rs. 312 crores to be floated through bonds by the AP Water Resources Development Corporation, construction of a 426-house pilot township colony at Uppal Kalan at a cost of Rs. 6 crores under the Valmiki Ambedkar Awaz Yojana, allotment of space at the King Koti Government Hospital here to Bhagwan Mahaveer Vikalangula Sahayata Samiti for making aids and appliances for disabled persons and adjustment of sales to erstwhile Hyderabad Allwyn Limited to the tune of Rs. 16.98 crores.

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