Rift between finance, energy depts over power duty waiver

Differences have surfaced between the finance and energy departments on the issue of providing electricity duty waiver for 10 years to new renewable power projects. The proposal was moved by the energy department headed by Congress minister Nitin Raut. However, veteran NCP leader and Deputy Chief Minister Ajit Pawar-led finance department raised objections against a blanket waiver. Ultimately, Chief Minister Uddhav Thackeray intervened and decided to discuss the energy department’s proposal after seeking Pawar’s view at the meeting slated for May 17.

A senior MVA minister said. “In view of the issues raised by the finance department, the cabinet did not give its approval.”

However, the state cabinet gave approval for giving oneyear extension for the commissioning of 418 MW renewable projects registered with the Maharashtra Energy Development Agency (MahaUrja). Earlier, two extensions were given for registration of renewable projects with MahaUrja as per the renewable power policy of 2015 and 2016. However, the extension was agreed upon in light of the pandemic.

“Unconventional or renewable energy generation projects will generate huge investments and jobs. The state will also get revenue. There will also be a reduction in air pollution,” said Raut.

The government proposes to develop 17,360 MW of renewable power projects connected to the transmission system by 2025. These projects include 12,930 MW of solar power projects, 1,350 MW of co-generation projects, 2,500 MW of wind energy projects, 380 MW of small hydro projects as well as 200 MW of urban solid waste based projects.