CII asks govt to extend relief on electricity tax

July 15, 2009 11:20 am

C. K. Ranganathan, Chairman, CII Tamil Nadu State Council,  has urged the government of Tamil Nadu to continue extension of electricity tax exemption on industry having captive power plants. The tax exemption provided for industries generating captive power expired on March 31, 2009.
 
With the power situation continuing to be grim and power cut still being imposed on industry, there is a clear need for the industry to generate power using all captive sources available.
 
Ranganathan said the exemption in the past has been a favourable step by the government to encourage industry to generate power using the available captive units till the state recovers completely from the grim power scenario. Exemption of generation tax makes it much more viable for the industry to generate power in their captive power plants, especially in the given economic situation. CII also urge the Tamil Nadu Electricity Board to consider following proposals to tide over the power crisis.
 
•     Allow purchase of power available on the power exchange during the night so that TNEB can supply power to industries during the night without power cut.
•     As the wind season has improved the power generation position, the TNEB may consider lifting 40 per cent power cut during the night hours to industry.
•     Expedite approval of inter-state purchase of power by industries.
•     Encourage industry for ‘Diesel Model’ captive consumption, wherein, the variable cost involved in producing power through diesel oil shall be borne by industries and the government in 25:75 ratio.
•     Exemption from Vat for the industrial units having furnace oil gen sets to be be extended further for one more year.