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Home News Power Sector News Gujarat introduces green cess of Re 0.02 per unit of electricity generated

Gujarat introduces green cess of Re 0.02 per unit of electricity generated

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GujaratThe Bill that stipulates levying a cess of Re 0.02 per unit of electricity generated in Gujarat by power firms using non-renewable sources was passed by the state assembly. Gujarat Green Cess Bill, 2011, was approved with a majority vote in the House. The cess will, however, not be applicable to companies generating power using renewable sources like, wind and solar energy. Power generating companies with installed capacity of less than 1000 KW have also been exempted.

The Bill was opposed by main Opposition Congress which contended that it will put additional burden on the end users, as power generating companies would ultimately pass the cost to the consumers.

Minister of State for Energy Saurabh Patel said said the fund collected through the cess would be used to create a ''Green Energy Fund'' for protecting environment and promoting the generation of electricity through renewable sources in the state.

The cess would be payable on the electricity generated in Gujarat, irrespective of where it was consumed in the state or sold outside, the Minister said.

Patel said an estimated Rs 244 crore that would be generated through the cess would be utilised for encouraging power generation through renewable energy sources.

He rejected the argument that the move would lead to hike in power rates. "The price rise for the consumer, if any, would be decided by the Electricity Regulatory Commission.
There is not point in opposing the Bill."

Source- MSN


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