The Hindu : Other States / Orissa News : State to exempt VAT on materials for RGGVY works

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Wednesday, Jul 23, 2008
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State to exempt VAT on materials for RGGVY works

Some 32 lakh BPL families will be benefited

Bhubaneswar: In its bid to expedite rural electrification which was low compared to neighbouring States, Orissa government was contemplating moves to exempt VAT and entry tax on materials procured for implementing works under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY).

The idea of exempting VAT and entry tax on materials for RGGVY works was decided at a meeting between Finance minister P C Ghadei and Energy minister S N Patro here on Tuesday.

“Though we are in favour of exempting the tax to expedite rural electrification, the State Cabinet will take a final decision on the matter,” Mr. Ghadei said, adding as many as 32 lakh families living below poverty line (BPL) would be benefited.

Mr. Ghadei said that Tuesday’s meeting discussed on a suggestion given by the Centre.

According to Energy minister Patro, nearly 60,000 habitations in the State would be electrified under the RGGVY. “The Centre has meanwhile extended the RGGVY to 19 districts of the State,” Mr. Patro said, adding that work in four districts in first phase had progressed well. Besides, Orissa also decided to exempt inspection charge on BPL families, Ghadei said.

The families with electricity facility were asked to pay Rs 30 for inspection. – PTI

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