Orissa demands cess on exported power
New Delhi: The Orissa government is demanding a cess of 6 paise per unit on power generated in the state but sold outside it as compensation for environmental losses due to generation and allied activities.

The proposal has foxed the Central Electricity Authority and the state's power generation companies.

Orissa has a total installed power generation capacity of 7,000 Mw. Of this, the state's power generation utilities contribute 2,320 Mw and the central public sector unit National Thermal Power Corporation's power plant at Talcher contributes 3,000 Mw.

Officials said the state does not utilise the bulk of its power and a substantial chunk is sold to Karnataka and Maharashtra.

Earlier, the Orissa government had asked for 12 per cent free power from the proposed 4,000 Mw ultra mega power plant in the state. It later dropped this demand.
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Andhra Pradesh may tax IT exports
Hyderabad: The Andhra Pradesh government is planning to begin taxing information technoogy (IT) exports from next year. Konatala Ramakrishna, minister for commercial taxes, said various modalities are being worked out on how to tax the revenue earned by IT companies. Sources said the government is considering the lowest value added tax (VAT) rate of 4 per cent on IT business.

According to the minister, several players in the IT industry have responded positively to the tax proposal during the on-going consultations.

Ranked fourth in IT exports in the country, Andhra Pradesh has been witnessing faster growth in the sector in recent years. Total IT exports from the state in 2005-06 was about Rs12,500 crore, a year-on-year growth of 51 pc.
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