Mantralaya sources told The Financial Express that the proposed hike will mop up additional revenue of about Rs 100 crore. The issue is likely to be discussed at the cabinet meeting of the state government on Wednesday.

According to the state power department's proposal, the electricity duty on commercial consumers will go up from 10 per cent to 11 per cent to fetch additional revenue of Rs 22 crore (of the total Rs 100 crore estimated). The per unit cost for the commercial consumers ranges from Rs 2.70 to Rs 6 while these consumers have to pay an electricity duty of 27 to 60 paise per unit. Of the total revenue of Rs 631.44 crore earned on account of the electricity duty by the state government, as many as Rs 218 crore were from the commercial consumers in 1998-99. With the proposed one per cent hike, there will be a rise of 2.7 paise to 6 paise per unit in the electricity duty for these consumers.

Even though the state government plans to bring in the capitve power users in the electcricity duty net, the state power department felt that the cost of power generation by the captive power generation plants were less compared to MSEB and thus be entitled to pay the electricity duty. The consumption of power from the captive power generation plants were not included in the electricity duty net in 1996 with a view to promoting such units to met the increasing power demand. So far, captive power plants with a capacity of 567 mw have been commissioned in the state though clearance has been given for the total capacity addition of 1,500 mw.

According to the power department proposal, 30 paise electricity duty will be imposed on the consumption of power from the captive power plants. With this duty and bringing such units at par with the industrial consumers, the government expects to raise additional revenue of Rs 64 crore (of the total Rs 100 crore estimated).