Latest news with #KanuDesai
Time of India
11-07-2025
- Business
- Time of India
32,000 MSMEs get backdated electricity shock
Surat: In a development affecting more than 32,000 micro, small and medium enterprises (MSMEs) in South Gujarat, businesses were hit with additional electricity charges for the past 12 months. Tired of too many ads? go ad free now Industry sources say these charges will total Rs 60 crore and will affect textile units running operations such as weaving, rapier jacquard, embroidery and other industries that use low-tension maximum demand (LTMD) connections. The additional fees stem from peak hour charges, calculated at 0.45 paisa per unit above regular rates. According to DGVCL officials, the average supplementary bill amount is Rs 18,750, to be recovered from 32,000 users. Sources in industry said many users received supplementary bills for more than Rs 40,000. The delay in billing arose because Dakshin Gujarat Vij Company Ltd (DGVCL) did not previously calculate peak hour charges, as the mechanism to collect time data on electricity consumption was not in place. DGVCL started installing new meters and upgrading its IT infrastructure to address this gap. The designated peak hours, according to DGVCL, are from 7am to 11am and 6am to 10pm. Textile units, which typically operate round the clock, are particularly affected, receiving substantial bills for peak hour usage. Conversely, units that do not operate during these hours have to pay less. DGVCL officials said they are complying with directives from the Gujarat Electricity Regulatory Commission (GERC), which mandated the collection of these charges starting June 2024. "We could not collect the peak hour charges earlier as the system was not in place. Tired of too many ads? go ad free now The meter configuration and IT system upgrade took time," said a DGVCL senior official. Following appeals by the Southern Gujarat Chamber of Commerce and Industry (SGCCI) to cabinet minister for energy Kanu Desai, the govt has allowed businesses to pay these charges in instalments without interest. "The minister tried to find a solution, but due to the GERC order, it cannot be reversed. Textile units are the most affected as we operate 24 hours," said Ashok Jirawala, vice-president of SGCCI. "The govt heard us positively and offered solutions, but the issue would not have been created if DGVCL had taken prompt action a year ago. The produced material has already been sold according to the cost calculated then, and in many cases, tenants have vacated rented units, so how does one recover the additional electricity charges," said Mayur Golvala, secretary, Sachin Industrial Co-Op Soc. "There must be a consistent policy related to industries so that we can focus on production and global competition. If we are affected by such unpredictable developments, it becomes difficult to operate," said Chetan Maniya, president of Rapier Jacquard Weavers Association. The rationale behind the peak hour tariff is to incentivise electricity use during periods of higher solar power production, typically the afternoons, thereby reducing reliance on conventional power sources during peak demand.
India.com
01-07-2025
- Business
- India.com
Gujarat Records 11% Rise In GST Collection For June 2025, Total Monthly Tax Revenue Nears Rs 10,000 crore
Ahmedabad: Gujarat has registered an uptick in its Goods and Services Tax (GST) revenue for the month of June 2025, collecting Rs 6,150 crore, marking an 11 per cent increase compared to Rs 5,562 crore in June 2024. This growth outpaces the national average, which stood at six per cent, according to an official statement from the state government released on Tuesday. Beyond GST, the state earned Rs 2,833 crore through Value Added Tax (VAT), Rs 876 crore from electricity charges, and Rs 21 crore via business tax, bringing the total tax revenue for June 2025 to Rs 9,880 crore. The month also witnessed a sharp rise in enforcement-related income. The mobile squad's exploration drives brought in Rs 32.34 crore, a 50.64 per cent surge compared to Rs 21.46 crore collected in the same month last year. Officials noted that this is the highest monthly recovery recorded since the rollout of GST in 2017. Marking the GST Day, the State Tax Department also unveiled its new official logo. Designed in hues of blue and gold, the logo symbolises transparency and communication on one hand, and taxation and development on the other. The unveiling was done by Gujarat's Finance Minister Kanu Desai as part of the department's commitment to modernising its identity and improving taxpayer engagement. Since the implementation of the GST in July 2017, Gujarat has consistently ranked among the top-performing states in terms of GST revenue collection. Known for its industrial base, manufacturing sector, and a large number of MSMEs, Gujarat contributes significantly to India's GST pool. Gujarat's GST growth is also attributed to its high compliance rate among small and medium enterprises, with many voluntarily shifting into the formal tax net thanks to simplified filing systems and access to credit under the Input Tax Credit framework. The state's success with e-way bill adoption, proactive redressal of technical issues, and regular taxpayer awareness campaigns has further improved its collection efficiency
Indian Express
06-05-2025
- Business
- Indian Express
Gujarat amends rural electric connection policy; changes will benefit families living in periphery of villages, says minister
The Gujarat government on Tuesday announced amendments to the rural electric connection policy to benefit families living in the periphery of villages. Apart from altering the load limit for residential connection for families living in the periphery of the villages, outside the village jurisdiction, the state government has also decided to levy fixed charges for public and commercial units in rural areas. In a release, Gujarat Energy Minister Kanu Desai said, 'As per the current policy of the Gujarat state government, residential connections in areas outside main village limits were eligible for upto 3 Kilowatts (KW) of single-phase connections from agriculture feeders. The cost for the same would be the actual cost or Rs 1 lakh, whichever is lower… Now, the families residing outside the village limits will be eligible for a 6 KW single-phase electricity connection and also pay a fixed charge based on the KW. This will benefit farmers living in homes outside the village limits… and not be levied heavy expenses.' Desai said that power utilities would undertake a technical survey of the lands being used for residential purposes along with primary agricultural use as well as those lands where there is no electricity connection available from agriculture feeders. Following the survey, and based on the approval of the superintendent engineer of the area, the properties will be given electricity connection from non-agricultural feeders. The release, attributed to Desai, also stated that the state government had decided to 'reduce the burden of costs' on public establishments such as shelter homes, Adarsh Residential schools as well as units of poultry farms, cattle sheds and pounds, shrimp farms, milk-chilling plants, mobile towers and mango-ripening farms. Earlier expected to pay full installation charges, these will now benefit by paying KW-based fixed charges. Grinding mills located outside village limits will also be included in the scheme. The government has also decided that the minimum number of homes required to install a Jyotigram feeder in non-tribal areas will be reduced from 15 to 10 to ensure that more clusters are connected to the feeders.
