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Since the State Government has made firm commitments to provide certain social obligations by extending assistance to power sector, it feels the need to augment revenue by tapping all available sources.

Hyderabad , Sept. 25

BRINGING in an amendment to the Andhra Pradesh Electricity Duty Act, 1939, the Andhra Pradesh Government plans to levy duty calculated at the rate of 25 paise per unit of energy from every person or a generating company that generates energy and uses for own purposes as against 6 paise now.

It was felt that this was necessary since exempting such duty in respect of energy consumed in the auxiliaries of the generating plant was causing loss to the State exchequer. This amendment seeks to empower the Government to fix the minimum aggregate capacity of the generating plant and will help attract levy duty and to exempt from such duty either permanently or for specified period by any person or a generating company from payment of the whole or part of the duty payable, by suitably amending the Act.

The existing Act provisions provide for levy of Electricity Duty at the rate of six paise per unit on all the sales of electrical energy by the licensee to the consumers other than Railway and Union Government. The electrical energy generated by the captive power plants and consumed by the owners of the plants for their own use is not subjected to levy of duty.

Therefore, a large extent of electrical energy used by the HT consumers is not attracting levy of electricity duty causing substantial revenue loss to the Government. Since the State Government has made firm commitments to provide certain social obligations by extending assistance to power sector, it feels the need to augment revenue by tapping all available sources.

There are three categories of HT consumers who are not covered by grid supply of electricity. They are captive consumers who consume energy either by generating sets within their premises or generating elsewhere and letting it through wheeling lines of the utilities, and consumers who supply energy by way of third-party sales by using the wheeling apparatus of the utilities. The other category covered by the third-party sales falls within the jurisdiction of the Andhra Pradesh Electricity Regulatory Commission.

In yet another enactment, the State Government plans to amend the Andhra Pradesh Cooperatives Societies Act, 1964, empowering the Government to allow them to transfer the assets in whole or part to others. This move is aimed at facilitating the ongoing reforms in the public enterprises and cooperative institutions.

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