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Curbs on captive power units eased

By Our Staff Correspondent

BHOPAL FEB. 1. Confronted with a massive electricity crisis, the Madhya Pradesh Government has been forced to amend its rigid captive power policy and under the new rules, permission would no longer be required to set up a captive power plant below 100-KVA capacity in the State.

Until now, the State Government had maintained a rigid stand vis-à-vis its captive power plants. The Chief Minister, Digvijay Singh, had gone on record, saying that industry cannot be allowed a free hand when it comes to generating captive power since the State Electricity Board generates a major chunk of its revenue from that sector.

The State Government's policy turnaround is significant from the point of view of the industrial sector, which has been suffering due to an acute power shortage coupled with the massive problem of load-shedding in recent months.

Under the new regime, permission from the Central Electricity Authority would, however, be needed for setting up captive plants above 25-MW capacity and permission for putting up other captive plants would be given by the Madhya Pradesh Electricity Regulatory Commission. Those setting up captive plants for their own use in the Special Economic Zone would be exempted from paying the electricity duty. Any number of persons would be eligible to form a group and install a captive power plant for their own use.

While conceding the demand for a "pragmatic'' policy on captive power, the State Government has decided not to allow a free-for-all scenario on the power front. Under the new dispensation, permission to install captive plants would be given to the user only on producing a "no dues certificate" from the electricity board. Under the amended rules, consumers would not be allowed to install a plant whose capacity exceeds one-and-a-half times the contracted demand.

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