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Your electricity bill to be cut? All you want to know in 5 points

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Mon May 30 2016, 2:23 pm
  • electricity bill, electricity bill india, electricity bill reduction, india electricity, power cuts, india news

    Huge power bills are a problem everyone has to deal with. However, some relief is on cards for power consumers as who might actually see their electricity bill being slashed, even in this day and age of skyrocketing prices. Want to know how and why? Here we present the work-in-progress process that may put a smile on your face, but may adversely impact others. (Reuters)

  • electricity bill, electricity bill india, electricity bill reduction, india electricity, power cuts, india news

    1. A govt committee has recommended revising the ad valorem royalty on coal temporarily and bring down power cost to consumers by up to 5 paise/unit - cut royalty by 3 percentage points to 11% for the next three years. The recommendation will be brought before the Cabinet for approval soon. “The primary objective of the new coal royalty rates, along with several measures taken by Coal India to boost output is to bring down the cost of power further,” a government official said. (Reuters)

  • electricity bill, electricity bill india, electricity bill reduction, india electricity, power cuts, india news

    2. Royalty rates are usually revised every three years. The last revision took place in 2012 when the rate for thermal coal was set at 14% of the fuel’s notified price and that for lignite coal at 6%. (Reuters)

  • electricity bill, electricity bill india, electricity bill reduction, india electricity, power cuts, india news

    3. Reduction in royalty rate is also expected to enable the industry to step up coal purchases. Currently, Coal India is finding it hard to quickly dispose of the fuel as the off-take has reduced in a tepid market. (Reuters)

  • electricity bill, electricity bill india, electricity bill reduction, india electricity, power cuts, india news

    4. This major step can reduce mineral rich states' revenue from coal royalty. The states' losses from a royalty reduction could be temporary and these could be more than offset by the higher volume of coal being produced by the state-run miner as demand picks up. (Reuters)

  • electricity bill, electricity bill india, electricity bill reduction, india electricity, power cuts, india news

    5. Coal India paid Rs 7,700 crore as royalty to coal-bearing states in 2015-16 at the rate of 14% on an annual production of 550 million tonnes. If the production level remains the same, the company would pay only around Rs 6,000 crore to states if the royalty is reduced to 11%.

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