Chennai, Jan 30 (UNI) Tamil Nadu Electricity Minister Arcot N Veerasamy today introduced a Bill in the State Assembly to amend the Tamil Nadu Tax on Consumption or Sale of Electricity Act, 2003, to encourage power generation by captive generating plants.
According to the Statement of Objects and reasons of the bill, at present electricity tax was levied under the Tamil Nadu Tax on Consumption or Sale of Electricity Act (Tamil Nadu Act 12 of 2003), on the surplus power sold as well as on the consumption of power for own use by the captive generating plants.
''In order to encourage power generation by captive generating plants, exemption from payment of electricity tax on the consumption of power for their own use is necessary'', it said.
''As section 14 of the Tamil Nadu Act 12 of 2003 enables the government to make an exemption or reduction in respect of electricity tax payable under that Act, among other things, on the electricity sold for consumption by or in respect of any class of persons, the government have decided to amend the Section 14 of Act sutiably'', it added.
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