The National Aluminium Company (Nalco) and Steel Authority of India Ltd (SAIL), on Monday, agreed to the State Government’s proposal to resolve the dispute over electricity duty (ED) arrears through mutual discussions in two months.
The two PSUs had gone to court challenging the arrear electricity duty (ED) amounting to `1,156.32 crore slapped on them by the State Government.
“A decision has been taken to settle the tax dues with Nalco and SAIL through mutual talks. The Government proposal was welcomed by both the PSUs and officers of the ministries concerned. The issues has been pending in courts for many years,” Chief Secretary JK Mohapatra told reporters after a meeting with Union secretaries of Steel and Mines.
The meeting decided to constitute a joint committee involving Principal Secretary Water Resources, Principal Secretary Energy, senior officers of SAIL, Nalco and departments concerned to look into different aspects of the disputes and work out a solution within two months.
The State has raised the demand of ` 1095.07 crore and ` 61.25 crore towards electricity duty from Nalco and SAIL respectively. Besides, another `300 crore is pending against Nalco towards water cess. The Government demand for tax dues have been challenged in the court.
After Nalco lost its case on the ED levied by the Government in the Orissa High Court, the PSU challenged the HC order in the Supreme Court. The case is pending in the apex court since 2010.Similarly, Rourkela Steel Plant, an unit of SAIL, moved the HC in 2002 challenging the ED raised against it.
Union Steel secretary G Mohan Kumar and Mines secretary AK Pujari, Development Commissioner Injeti Srinivas, Water Resources secretary
SC Mohapatra, Energy secretary Pradeep Kumar Jena, and senior officers of the two PSUs were present.