Chief Minister J Jayalalithaa on Friday announced concessions to boost power generation in small industries including reduction in VAT on generators, margin money to be paid by entrepreneurs while buying gensets and extension in exemption of VAT on furnace oil used by generators till May, 2013.
The CM announced these concessions, accepting requests made by officials of the Coimbatore District Small Industries Association (CODISSIA), Southern India Mills Association (SIMA) and Association of Tamil Nadu Paper and Board Mills.
The 14.5 per cent VAT on generators was reduced to 5 per cent. The 20 per cent margin money required for buying gensets, when availing loans from TIIC, was slashed to 10 per cent. Exemption of VAT for furnace oil, allowed from Feb 1, 2012 to Sep 30, 2012, was extended until May 31, 2013 with retrospective effect from Oct 1, 2012. These measures would impose an additional expenditure of `97 crore on the State, Jayalalithaa said in a statement here.