AP moots linking ind power subsidy with energy saving code

Govt provides subsidy of 25-50 paise per unit on power consumption for 5 years to newly set up industrial units

New industrial units can claim electricity subsidy from the state only if they adopt practices that help save energy, according to a proposal under active consideration by the authorities.  

Chief secretary, P K Mohanty, who is also the chairman of the state energy mission, disclosed on Thursday that a green factory code was being developed for the industrial sector as a part of the energy conservation initiative. He said the government was thinking of granting electricity subsidy only to those who implement this code.

Under the state industrial promotion policy, the government provides a subsidy of 25-50 paise per unit on power consumption for a period of up to 5 years to the newly set up industrial units.

Quoting a study commissioned by the AP government, Mohanty said the state could save over 15,000 million units (mu) of power across various sectors translating into a saving of Rs 9,543 crore in a year. The industrial sector alone could save around 4,820 mu by adopting practices that help improve energy efficiency in power consumption.

A similar Energy Building Code aimed at reducing energy consumption for big buildings and offices will come into force from August 15 this year, he said.