TN Govt to refund VAT on premium diesel for industrial gensets

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Chennai, Oct 11 (UNI) The Tamil Nadu Government, which was facing power crisis, offered to refund Value Added Tax (VAT) on premium diesel purchased by industries to enable them to operate generators during peak hours falling between 1800 to 2200 hrs.

To ensure uninterrupted power supply to households during the peak hours, the State Government recently ordered loadshedding and asked industries not to draw power from the Tamil Nadu Electricity Board (TNEB) during that period.

To encourage industries to use their generators instead of drawing power from the TNEB, Chief Minister M Karunanidhi ordered VAT concessions on premium diesel purchased by them, an official release here said.

After the Chief Minister wrote to the Union Petroleum Minister, the Centre had come forward to make available premium diesel through oil companies.

As the premium diesel would cost Rs 50 a litre against the market price of Rs 37.13, the State Government, to help the industries, offered to refund VAT through the TNEB, the release added.

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