State Govt limits rebate in power bills for industries of region to Rs 20 cr annually
| Date :24-Jun-2022 |
Staff Reporter
Maharashtra Government has given green signal to the scheme providing rebate in power tariff to industries for promoting industrialisation in backward regions of Vidarbha, Marathwada and North Maharashtra and D and D+ notified areas. The maximum outlay for the scheme is Rs 1,200 crore annually. One major change incorporated post review by the experts’ committee is limiting the outflow of incentive to industries. An upper cap of Rs 20 crore is fixed per industry on annual basis. The same was done to ensure that capex could be utilised throughout the year among all sectors.
Earlier, continuous process industries managed to gobble-up maximum gains as one of the scheme components allowed rebate on consumption and in view of nature of their usage they were biggest beneficiary. Due to this, the capex got exhausted within nine to ten months and micro, small and medium enterprises were left out from deriving the benefits.
The scheme is meant for industries located or would come-up in D and D+ industrial areas apart from the three regions where development is below par as compared to Mumbai and Western Maharashtra regions.
The concession to industries are provided in fuel adjustment cess (FAC), capacity utilisation and for setting up new industries in backward regions.
The scheme was started in April 1, 2016. Since last one of the two years after its mandate ended, the benefits stop accruing to the industries. In the meantime, several complaints were received by the Government about misuse of the scheme by one particular lobby of industries.
A cabinet sub-committee deliberated on the matter and after approving the new scheme, forwarded a note for the approval.
The scheme would continue till year 2023-24. In case, due to any reason, if the concession is not provided in a financial year then the same would be adjusted next year.
Further, in the revised scheme, it is envisaged to stagger the time of day (ToD) concession in two slots for better utilisation. In Slot-1, form 2200 to 0600 hrs, LT category users would get benefit of 50 paise/unit. In Slot-2, from 0900 to 1200 hrs and 1800 hrs, 20 paise/unit. For HT category, 10 paise per unit concession will be in Slot-1 and 5 paise/unit in Slot-2. For extra high voltage (EHV) category, the benefit accruing would be 5 paise/unit in both the slots.
In the Government Resolution issued by Industries, Power and Labour Department, the industrial users having ToD meter should be provided 2/3rd incentive in second slot of total monthly usage.
The definition of new industries is one that has come-up after April 1, 2016 onwards.
Now, another clause is added -- one about purchase made through auction held by NCLAT and production started from the cut off date would also be allow to get rebate.
Such industries would need to furnish requisite certificate from District Industries Centre.
For any capacity expansion, the concession will remain applicable for a period of three years from date of capacity utilisation post April 1, 2016.
In another clause it is mentioned that new industries that have come-up post April 1, 2022, would get rebate in power bills after three years of operation for a period of three years. The concession would vary from region to region -- 120 paise/unit across three categories in Vidarbha, 110 paise/unit in Marathwada, 75 paise/unit in North Maharashtra, 55 paise/unit in D category and 85 paise/unit in D+category area.
The said scheme is not applicable to industries drawing power through
open access and limited to usage of power through conventional means for units that have co-generation or hybrid mode of power utilisation.
Rebate scheme will be offered only to eligible industries who have made prompt payment of power bills and if they have any liability then they will not be able to avail the benefit. One more caveat in the scheme is in case industries in HT and EHV categories violated contract demand then they would not be eligible for claiming rebate in bills.