The Centre has urged state governments to exempt developers of small hydropower projects from cess and the obligation to provide free power.
While the central government is providing financial assistance to the small hydropower projects, the states impose several taxes and cess, negating the assistance of the Centre. The Ministry of New & Renewable Energy (MNRE) has suggested to states to waive off cess and taxes to the small hydropower developers for six years from the commencement of commercial operations. Such developers may also be exempted from the provision of free power demanded by some state governments.
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