MoP for scrapping

MoP for scrapping
AGENCIES

NEW DELHI, DEC 15: Ministry of Power today demanded removal of dividend distribution (DD) tax of 22 per cent on independent power producers (IPPs) and import duty on liquid fuel to make power from IPPs competitive.

"We are speaking to the Ministry of Finance to remove the dividend distribution tax of 22 per cent on IPPs and granting concessions in the high import duty imposed on liquid fuel. These steps are necessary for making the power from the IPPs competitive," S S Sharma, Special Secretary, Ministry of Power, said at Infranet 2000 here.

Elaborating on the need to evolve a conducive environment for private investment in power sector, he said unless the state electricity boards (SEBs) were in a position to pay for the power they purchase, there was absolutely no hope for power the sector.

Sharma said compulsory metering of power would be done from December 2001 to check the high unreported transmission and distribution losses, majority of which were thefts and pilferages. The government has also formulated a new Accelerated Power Development Programme (APDP), with an outlay of Rs 1,000 crore for the current fiscal, for supporting states committed to reforming the power sector and SEBs, he said adding inter-regional transmission lines were needed to transfer power from surplus states to the deficit regions of the country. "We have plans to set up a national grid to transfer 30,000 MW of power by 2012," he added.