New tax to recover power dues from ULBs on cards: Minister

Bengaluru: The Energy Department is considering a 2 per cent power tax on urban local bodies (ULBs) and panchayats that have defaulted on electricity bill payments.

The tax burden may be passed on to consumers in these areas.

Energy Minister K J George said the proposal, inspired by Haryana’s model, will be placed before the cabinet after departmental approvals.

The move aims to make Karnataka eligible for the Union government’s Revamped Distribution Sector Scheme (RDSS), which offers incentives like a 15 per cent subsidy on smart meters.

With Rs 10,000 crore in unpaid dues, the state is also exploring mandatory pre-paid smart meters in government buildings to recover pending payments.