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No. PR-3/Khandsari/05442
M.S.E.B., Bombay,
Dt. 3rd Feb. 82.
Commercial Circular No. 371

Sub  : 
Concessions to sick Khandsari units.
Ref  : 
Departmental Circular No. 329 Dt. 11.4.1979

         
The guidelines approved by the Board, regarding granting of concession to the sick seasonal and non seasonal industries who want to revive their operations have been notified vide Deptt. Circular (Commercial) No. 352 Dt. 9-7-80, read with Deptt. Circular No. 352 (A) dt. 6-9-80. In this connection some field officers have raised some querries regarding applicability of those guidelines in respect of Khandsari Industries. As such in continuation to the above mentioned circular this is to further clarify as follows:

1.

The concessions as per the guidelines can be extended to any seasonal industry for the year during which it satisfies any one of the following three conditions.

i. The unit should have been closed / disconnected for a continuous  period not less than 12 months (including their working season).
ii.

The production during the year under consideration, should be less than 10% of their normal production. The Concerned units should produce figures of production audited by a Chartered Accountant in support of this. This question will not arise if the power supply itself has remained disconnected during that year.

iii.

A unit is also entitled for concession for the year during which it had been declared sick by the State Govt. (Director of Industries). This condition was in force only upto 31.5.80.

However in case of Khandsari Industries, whose working season usually starts from October to May next year, if a certificate is issued by the Director of Industries, certifying the unit as sick from 1-10-79 upto 31-5-80 or a period beyond the same should be considered for giving concessions for the entire billing year 1979-80 i.e from 1-10-79 to 30-9-80.

Further, in case of seasonal units which have been declared sick by the Director of Industries w.e.f. any retrospective date, the concessions as per the guidelines may be worked out for all the "Billing years ", covered under that certificate.

2.

During the year for which the unit is entitled for concession, 20% of the capital cost for laying the line (12% on that part of the cost, if any which is contributed by the consumer himself) or the actual energy charges whichever is more should be recovered in lieu of the yearly minimum charges. This amount should be calculated on the entire period of sickness and not on monthly basis.

3.

The initial cost and also the additional capital expenditure, if any incurred in respect of the connection under consideration will have to be considered for calculating 20% / 12% concessional return in lieu of tariff minimum charges.

4.

In case of consumers who had opted HTP-1, monthly minimum tariff and if such consumer is entitled for concession for any particular year then 20% / 12% concessional return is to be recovered in lieu of tariff minimum charges for the complete billing year under consideration.

In view of the above clarification, all the pending cases of granting concession to the sick Khandsari units who want to revive their operations may be now settled at the earliest and Zonewise compliance report in the form of consolidated statement may be forwarded to this office.

In case of the sick units, against which civil suits have been filed and if such consumers now approach for compromising the civil suits with a view to revive their operation, the amount of concession may be worked out and approval of the competent authority for said compromise may be obtained before restoring the supply.

Also prompt and effective action against the units which are not going to revive may be taken as per our usual procedure for recovery of our dues.

 
Sd/-
Chief Engineer (RE&Com.)

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