Government sets criteria for allocation of power from central pool to states, UTs
The Ministry of Power allocates power generation capacity to states from time to time from its pool of unallocated quota in Central Generating Stations (CGS).
Electricity from the central pool will not be allocated to states and UTs which will impose taxes on clean energy projects, impede the inter-state flow of power and have not cleared subsidy dues on electricity tariff, according to an official order. The Ministry of Power in an office order also stated that the power from the central pool will not be allocated to those states which have regulatory assets.
Regulatory assets come into existence when power regulators acknowledge that the tariffs imposed on electricity consumers do not adequately cover the power purchase costs of distribution companies (discoms).
Certain aspects will be examined whenever a request will be received from any state/union territory (UT) for allocation of power from the unallocated quota of Central Generating Stations, the order dated March 31, 2023, said. The ministry will take into account non-creation of regulatory assets and timely payment of subsidy declared, if any, in the consumer tariffs by the state government to distribution utilities. Lastly, whether any tax/cess has been imposed by the state concerned particularly on hydro-power or on renewable energy projects which have the potential to obstruct the inter-state flow of electricity, it said adding "allocation of power to a state/UT would be strongly disincentivised if it is found violative in any of the above criteria."
The Ministry of Power allocates power generation capacity to states from time to time from its pool of unallocated quota in Central Generating Stations (CGS).
Priority will be given to the allocation of such power from unallocated quota to such states which adhere to financial discipline and refrain from the imposition of tax/duties on flow of power to other states, the order said.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
04:09 PM IST