Industries get duty exemption for captive power generation

Energy dept to purchase 1,000 MW to meet demand

The state government on Monday exempted industries from paying the electricity duty on captive generation of power for self-consumption up to 500 kilowatts.

Speaking to reporters in Bengaluru, Energy Minister D K Shivakumar said that hitherto the exemption was given on captive generation up to 250 kilowatts.

The exemption limit of the electricity duty (5 paise per unit) had been increased to encourage more industries to generate power on their own.

It had also been a long-standing demand of industrial organisations, Shivakumar said.

To purchase 1,000MW
The Energy department will float tenders to purchase 1,000MW of power on a medium-term basis to meet the power demand from June.

Shivakumar said the financial bids were getting ready and power producers from the southern region could participate.

The minister said the India Meteorological Department had predicted good monsoon rains and power production should improve from June.

Further, the third unit of the Ballari Thermal Power Station and all units of the Sharavathi power station (the units were shut down following a fire accident in February) will become operational by June.

He said the power demand for irrigation needs had come down by 400MW following shortage of water in dams, channels and reservoirs. It is anticipated that the sugar cane cultivation could come down by 50% this season due to shortage of water, he added.