Ministry of Power has asked states not to levy or impose tax or duty on generation of electricity especially from hydro projects for it being illegal and also exhorted them to withdraw any such levies promptly. “It has come to the notice of Government of lndia (Gol) that some state governments have imposed taxes / duties on generation of electricity. This is illegal and unconstitutional,” said a power ministry communique to chief secretaries of all states and Union Territories on Tuesday.
The ministry said any tax / duty on generation of electricity, which encompasses all types of generation viz. thermal, hydro, wind, solar, nuclear, etc. is illegal and unconstitutional.
