New factories exempted from electricity duty in Uttar Pradesh as relief to industries

Lucknow, Feb 19 (Calcutta Tube) The Uttar Pradesh government Friday decided to exempt new industrial units from electricity duty to provide relief to industries, particularly power-intensive units.

The decision taken by the state government’s energy department provides for exemption from electricity duty to all industrial units for a period of 10 years. However, the period for relief in electricity duty for all pioneer units will be 15 years, said a press statement.


Uttar Pradesh Secretary-Energy Navneet Sehgal said the new provision reflected the will of the government to promote industrial and economic development in the state.


‘It is one of the most important steps to attract new entrepreneurs and industries to Uttar Pradesh,’ added Sehgal, who is also the chairman and managing director of Uttar Pradesh Power Corporation Ltd (UPPCL).


At present, according to the provisions of UP Electricity (Duty) Act 1952, electricity duty is charged at the rate of 9 paise per unit from metered connections, while 3 paise per unit is charged from those people who are using energy for industrial or other purposes, produced from private generating resources.

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