Any organisation installing a
power generating unit based on non- conventional energy
sources like mini-micro hydel projects, wind energy,
bio-energy, solar energy etc.
in Madhya Pradesh is eligible for
incentives briefly explained here. The unit may
be set up in the private sector or as a joint sector
project.
The highlights
of the scheme are as follows:
No restriction on generation
capacity.
Power may be used
at the point of generation or at any other place
by the generating party
or it may be sold
to M.P. Electricity Board @ Rs.
2.25 per unit or to a third party (on
mutually agreed rates) provided it is already
a H.T. consumer of the Board.
Power may be wheeled from
the point of generation to any other place for
proprietary use or for selling to
the third party through MPEB's transmission/distribution
system on payment of two per cent wheeling charges.
Electricity duty exemption
for five years.
Demand cut up to 30 per
cent of the installed capacity of non-conventional
energy unit if the generation party is a consumer
of MPEB and establishes the unit for its own use.
The transmission/distribution
lines and equipment required till the
nearest grid sub-station will be maintained
by MPEB at cost, but will need to be provided by
the party.
Government land will be
leased out to the party initially for a period
of 99 years, subject to renewal.
In case of non-availability
of government land, private land will be acquired
by the government and made available to the party
at the acquisition cost.
Sales Tax
benefits for Power generation
Plant and machinery installed
for generation of power shall be exempted form State
sales tax.
The generating party
or any of its industrial units or the
third party user will get sales
tax exemption or deferment or composite benefit
on goods manufactured and sold
up to the eligible investment
on the non-conventional power
generation system for a minimum period
of six years from the
date of commencement of
generation at the non-conventional
power generation system or the date on which
the cumulative quantum is achieved, whichever is
earlier.
Under the scheme of sales
tax deferment or composite benefit, the amount deferred
will be recovered in equal annual instalments beginning
from the next financial
year after the unit has
exhausted its eligible amount.
Such power generating units
will be treated as industries and all the
concessions available to new
industrial units will be applicable.
Organisations desirous
of setting up non-conventional
power generating systems, will have to submit
their application on the prescribed format to the
M.P.Urja Vikas Nigam Ltd. with a copy to Secretary.
M.P. Electricity Board Jabalpur after approval by
M.P. Urja Vikas Nigam; the generating
unit and the user unit will be required to enter
into necessary agreements with MPE.
The scheme of State Capital Investment
Subsidy, 1989 will continue to be available for small
scale units. Industrial units in the cooperative sector
with a minimum investment of Rs. one crore in
plant and machinery and a membership of a minimum of
one hundred persons, will also be eligible.
Maximum benefit is limited to
percentage of capital investment in fixed assets as
shown above. There is no capping on quantum of tax concessions
for Thrust Sector industries set up withthe minimum
specified investment in plant and machinery.
Units set in Industry Blocks'in
any district of the State willget the same commercial
tax concessions as those set up in category `C' districts.
Concessions are available
on finished product, by-products, waste
products, raw materials, incidental
goods and packing material.
Payment
of tax is deferred for a period of five years.
Government
land will be offered with the approval of the Empowered
Committee as equity participation on behalf of the
Government at current market value for setting up
Joint Ventures.
The companies
thus formed who are given any kind of Government land
will be expected to complete the project within a
period of three years from the date of transfer of
land, failing which the land will revert to the Government.
The company will not be allowed to transfer the land
to anybody else, or use it for any purpose other than
that for which it is allotted.
For construction of approved
category hotels, etc. in the urban areas, exemption
under Section 20 of the Urban Land Ceiling Act will
be made available on a case-to-case basis as decided
by the Empowered Committee
Interest
subsidy upto a maximum of 5.5% of interest rate, on
capitalised basis corresponding to moratorium period
including 1.0% for speedy approval/sanction and release
of first installment of loan within the stipulated period
of 90 days from submission of TEFR/DPR shall be applicable
for payment to/through the major/leading financial institutions/intermediary.
