Andhra Pradesh located gas-based power projects supplying electricity to Telangana at lower prices have been exempted from the Value Added Tax (VAT) of Rs 1,200 Cr. Congress questions the government’s decision.

Vijayawada: Andhra Pradesh Congress Committee (APCC) questioned the Chief Minister N Chandrababu Naidu the rationale behind exempting gas-based power projects in the state from VAT of Rs 1,200Cr. Lashing at the government’s decision, State Congress Unit Vice-President, Devineni Rajasekhar (Nehru) demanded an explanation from the chief minister. He said that the gas-based power projects located in the state are offering power at Rs 6 per unit to Andhra Pradesh. But, the same power plants are offering electricity to Telangana at Rs 4.75 per unit.

Despite the power plants like GMR, Lanco, GVK, RVK are located in the state they are not offering power to the state. Yet, the revenue deficit state government has exempted them from paying VAT, he alleged. “When the issue of payment of compensation to farmers and other poor sections of people comes up, the government is talking about the revenue deficit. But, though the gas-based power plants are selling electricity generated to outside the state, the government has exempted them from the VAT,” he said.

Terming the decision of the state government is detrimental to the interests of the state; he demanded the government to reverse its decision of VAT exemption.