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Home News Power Sector News Maharashtra hikes electricity duty - expects 723.43 crore increase

Maharashtra hikes electricity duty - expects 723.43 crore increase

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Ashok ChavanIn a decision that would dig deep into power consumer's pockets, maharashtra chief minister Ashok Chavan gave nod to hike the electricity duty levied on industrial and residential consumers, cinema theatre owners and traders by 2 to 3 per cent. The government expects an increase by Rs 723.43 crore in the state exchequer. Electricity duty is the charge that goes directly in to the state government's kitty.

The government has decided to increase the electricity duty for industrial consumers from 6 % to 9 %, for theatre owners from 8 % to 10 %, for residential consumers from 12 % to 15 % and for traders from 13 % to 17 %. With the implementation of the hike, the annual revenue of state is expected to increase by Rs 723.44 crores. Currently the state's revenue is Rs 2123.11 crores.

“The tariff rates are decided by the MERC. But the hike in the electricity duty is entirely the purview of the state government. The extra amount that the consumers pay by way of electricity duty goes directly in the state government's pockets. In any of the two cases, be it through tariff or by electricity duty, the consumer will have to pay from his nose,” an industry expert said.

Source- sakaal times

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