Odisha Govt launches scheme on One Time Settlement of Arrear Electricity Duty and Interest


The Government of Odisha has issued a notification on the proposal of One Time Settlement (OTS) of arrear electricity duty and interest. This will be applicable to consumers who generate energy for their own use or consumption (Captive consumers). The notification was issued on 3oth November, 2022.

Section 5(1) of the Odisha Electricity (Duty) Act, 1961 (OED Act) provides for imposing interest on the amount of electricity duty remaining unpaid. This interest is applicable until the payment is made. The interest was charges @18% per annum.

As per the newly launched OTS Scheme of settlement, scheme interest would be charged at a reduced rate of interest @ 9% per annum for those Captive Power Plants (CPPs) who want to avail the benefits of the scheme.

The scheme contemplates 3 category of cases and the manner to be  adopted for settlement of the arrear electricity duty and interest:

  1. Cases where payment has been made to and kept in a bank account as per direction of the court in the electricity duty matter pending before it.
  2. Cases where arrear electricity duty has been demanded, payment has been made to State Government.
  3. Cases where industries have been closed/ where power plants become non-operational

General Conditions applicable to all the above category of cases:

The OTS scheme shall be applicable to only those captive consumers against whom there is outstanding electricity duty arrear demand as on 31st March, 2022.

The OTS scheme shall be kept open for a limited period of 2 months from the date of issue of operational guidelines by the Engineer-in-Chief (Electricity)-cum-Principal Chief Electrical Inspector, Odisha. 

Upon application by the intending captive consumer and after reconciliation of accounts, the OTS order shall be issued preferably within two (02) months from the date of application indicating the settled amount to be paid and stipulating the period not exceeding two (02) months in which payment is to be made. 

The Engineer-in-Chief shall make best efforts (Electricity)-cum- Principal Chief Electrical Inspector, Odisha, and the captive consumers to conclude the settlement in all respect by 31st  March, 2023.

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