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Captive Power Plant Captive power plant means powerplant including generating sets if any installed by consumer of MP Electricity Board (MPEB) for his own use. Eligibility For Installation of Captive Power Plants Such entrepreneur shall be eligible to install captive power plant who - is a consumer of Electricity Board (High Tension or Low Tension) and- does not owe any arrears/amounts to Electricity Board, In case of any dispute arising regarding payment of arrears due to MPEB- The concerned consumer shall have to deposit immediately the principle amount out of the arrears and also simple interest @ 18% per annum on such amount. After depositing the amount as mentioned above, the dispute may be referred to Divisional Commissioner of concerned area for arbitration. The consumer shall have to submit an undertaking to MPEB that the necessary amounts, if any, shall be deposited within 15 days of the order of the Commissioner. The consumer shall have to deposit the necessary amounts as per the order of Divisional Commissioner within 15 days of the order. Use of Captive Power Plant The captive power plant shall have to be used only as following: For such consumers, to whom permission is granted after issue of this notification, it shall be binding to draw atleast 50% of electricity from MP Electricity Board out of their total monthly requirement. The consumer shall have to install a high precision electricity meter at his own cost as per the standards laid by the Board, so that MPEB may record the reading of power generation from time to time. Duration The permission to run captive power plant shall be given for a period not exceeding 10 years at a time. Wheeling Wheeling of power shall not be allowed to a consumer installing captive power plant, other than for his own use. Electrical power generated by captive power plant shall not be sold to third party. In order to continue or avail the facility of wheeling for own use, all the arrears shall have to be paid by the consumer to MPEB. The consumer availing the facility of wheeling shall have to pay the reactive power charges regularly, as applicable from time to time. Wheeling Charges The facility of wheeling shall be available to the consumers installing captive power plant for his own use subject to payment of the following charges.   S.No. Particular Wheeling Charges Upto15MW Above15MW 1. Percentage of quantum of electricity  supplied upto a distance of 40 KM 7% 10% 2.  Percentage of quantum of electricity  supplied upto a distance of 60 KM 9% 12% 3. Percentage of quantum of electricity  supplied upto a distance of 100%     15% 4. Percentage of quantum of electricity  supplied above a distance of 100 KM 13% 17%   In case where wheeling is done to more than one unit of consumer, the wheeling charges shall be calculated on the basis of the concerned slab of total wheeled power. Energy Banking The facility of energy banking shall not be available to any consumer/entrepreneur. Exemption From Electricity Duty No exemption shall be available on the electrical energy generated by any captive power plant. However, the existing exemption shall continue for such period as may be fall short of total period of exemption granted earlier. If any consumer has availed the benefit of exemption of electricity duty once, then the exemption shall stand withdrawn in case of replacement of captive power plant.   Cess on Electrical Generated by Captive Power Plant An energy development cess shall be levied @ 20 paisa per unit from captive power plant. The cess shall be recovered by MPEB alongwtth monthly electricity duty. Provision of Committee Regarding Grant of Consent toCaptive Power Plant/Generating sets As per the existing law, the entrepreneur/consumer has to obtain consent of Electricity Board for installation of captive power plant under section 44 of Electricity (Supply) Act, 1948. In this regard, the consumer of MPEB shall be allowed to apply to the Committee headed by Principal Secretary (C&l) in case of delay in obtaining consent or problems related to permission for installation of new captive power plant. The Principal Secretary (Energy), Chairman/Member (Finance), MPEB and Managing Director, MPSIDC shall be the members of this Committee. The Committee shall dispose off the applications within four weeks. Statutory and other Permission The consumer shall have to obtain all statutory/non statutory permission for installation of captive power plant and shall be required to make his own arrangements for land, fuel and water supply. If the capacity of the captive power plant exceeds 25 MW, the consumer is required to obtain necessary prior permission from Central Electricity Authority. Interconnection Line For inter-connecting the power supply, from Captive Power Plant to the grid system of MPEB, if new inter-connection lines, equipments, etc. are required or the capacity of existing transmission and distribution lines, etc. is required to be augmented so as to provide the facility of wheeling, then its cost shall be borne by the applicant entrepreneur/consumer. Cancellation of Permission If any entrepreneur/consumer is found to be violating the Captive Power Policy, terms and conditions imposed by MPEB in the permission granted, agreement executed regarding electricity supply with MPEB, etc. then the permission for captive power plant shall be cancelled and the action shall not be taken against such consumers as per the existing acts/rules.