New and renewable energy policy lays stress on green energy tax

Bhopal (Madhya Pradesh): The new policy introduced by state new and renewable energy department lays stress on green energy tax, which is to be paid by the developer if he sells energy to the third party or other state. This tax will generate extra revenue for Madhya Pradesh, which will be used to develop green cover in the state.

Source at new and renewable energy department said that the new policy was introduced in July – August 2022. Earlier, there was separate policy for wind, biomass energy and minor hydro energy.

“Under the new policy, there is provision to impose green energy tax, which is 10 paisa per unit against the sale of electricity to third party. The first party will be the developer, second party will be state government. If developer sells power to other state, then he will have to pay green tax,” a department official said wishing anonymity.

As per policy, 10 paisa green tax will be distributed between Madhya Pradesh Power Management Company and Madhya Pradesh Urja Vikas Nigam in 7:3 ratio.

In case of captive use, open access and sale of power outside the state, green tax will be taken at the rate of 10 paisa per unit. The new policy also comes up with subsidy in electricity rate.