New tax regime to lower cost of thermal power

HYDERABAD: The introduction of the Goods and Services Tax (GST) is set to reduce the cost of power in Telanganaas most of its electricity comes from thermal stations.The GST council proposed 5 per cent tax slab for coal while imported coal is set to attract basic customs duty. Telangana largely depends on thermal stations for its daily power generation of over 4,083 MW installed capacity with the Kothagudem, Kakatiya, Ramagundam and Singareni thermal stations pumping more than 3,000 MW power into the state grid to cater to the needs of over 4 crore people.

The GST slab for coal varies from 11 to 12 per cent, and is expected to lead to a positive impact on coal users and a negative one for those who import it. The effective price of coal for consumers is likely to decrease by Rs 100-150 under the new tax regime.

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