No VAT on diesel used for captive power generation in AP

Our Bureau Hyderabad | Updated on August 22, 2012 Published on August 22, 2012

State to seek additional power from TN

The Andhra Pradesh Government today announced exemption of VAT on diesel for power generation for captive use while also deciding to allow wind power farms for industries by waiving wheeling charges.

The latter, however, will require final nod from the Cabinet.

Addressing a press conference, the Chief Minister N. Kiran Kumar Reddy, said that the State was passing through a tough power situation with the demand supply gap widening to nearly 50 million units per day mainly due to drop in hydel power generation and inadequate gas for power plants.

He said that the Government has charted out a short-term, medium-term and a long-term plan for the power sector. As a part of the short-term measures, he said, “We are also seeking additional unallocated power from nuclear plant in Tamil Nadu and from Neyveli Lignite Corporation as it is difficult to draw extra power from northern grid due to limitations of the grid.”

Referring to the farm sector, he said that the Government will ensure they get seven hours of power supply. But with regards to industries, they are being allowed open access (they can purchase power from market). They will also be allowed to access power generated using RLNG. The Government will waive wheeling charges.

Last year, the demand was 234 MUs a day and the State was able to generate 212 MUs a day. This year, the demand is 260 MUs and the generation 210 MUs. The drop was due to low hydel power output.

He said the State is faced with a strange situation where water from Godavari is flowing into sea and there is not have adequate water in Krishna reservoirs.


Published on August 22, 2012
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