Rajasthan High Court stays discoms’ duty demand on solar power plants

Rajasthan High Court has issued a stay order on the demand of the discoms for payment of duty on electricity consumed by captive solar plants.

The exemption from electricity duty is provided in the Rajasthan Solar Policy-2019. Captive solar plants are eligible for exemption for seven years from the date of the commissioning of the projects. Despite this exemption, the discoms have been sending notices to the power producers for the payment of the electricity duty.

Earlier, Rajasthan Solar Association had approached senior officials in the departments of finance, energy secretary, nodal agency RRECL for a review of the demand in the light of the exemptions provided in the policy. Finding no solution, RSA had sought legal remedy and moved a petition against the imposition of the electricity duty with the Rajasthan High court, Jodhpur.

In the interim order, the court asked the members of the solar industry to submit their grievances within six weeks prior to the next hearing date. The court has also directed the department concerned not to initiate any action forcing the members to pay the duty.

Vishnu Khandelwal, executive member of RSA, said despite exemption in the Rajasthan Solar Policy, discoms demand for the electricity duty payments will scare away prospective investors in the state.

ET Energy World
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