Departmental Circular (Com) No.343

Sub  : Concessional tariff to power Intensive Industries-  Issue of the Bank Guarantee.

As per guidelines outline vide Deptt. Circular No-312 dt.1 1.9.78, for applying Concessional tariff to power intensive industries on the basis of previous year's costing certificate, the concerned consumer has to furnish the Bank Guarantee for the amount of the estimated concession for full 12 months period. The issue of the Bank Guarantee has been reviewed by the Board and vide B.R.No.1 19dt.28.9.79 and decided the amounts of security deposit, R.E. debentures, if any, which may have been paid by the consumer to the Board should also be taken into account for the purpose of calculating security. This implies that these deposits plus Bank guarantee should make up the amount corresponding to 12 month's concessions. In other words the Bank Guarantee is to be reduced to the extent of the said deposits. Sd/- Chief Engineer (RE & Com)