Maha extends tax waivers to Dabhol Power up to March 2022
Maharashtra state Cabinet on Monday decided to extend the exemption to the Ratnagiri Gas & Power Pvt Ltd (RGPPL), formerly called Dabhol Power Company, in payment of Value Added Tax (VAT), Central Sales Tax (CST) and transmission charges for another five years effective from April 1, 2017.
The extension was necessitated as the exemption was applicable during 2015-16 and 2016-17 (up to March 31). RGPPL has received a relief of Rs 171 crore due to the waiver in last two fiscal years.
RGPPL owns the 1,967 megawatt (MW) power project, which wed since January 2014. It was revived by the Centre in March 2015 under the Power System Development Fund (PSDF) scheme. The company is currently generating 500 MW of power.
During November 26, 2015, and March 31, 2017, RGPPL supplied 500 MW of power to the Indian Railways at the per unit tariff of Rs 4 70. Of the 500 MW, RGPPL supplied 250 MW in Maharashtra. Subsequently, the Indian Railways and the Union power ministry had reached an agreement in November 2016 for the supply of 500 MW at Rs 5.50 per unit for the five-year period.