Order


    1. In the G.O. read as1st paper above, orders were issued declaring 'Tourism' as an industry. One of the benefits granted to investors in specified categories in the Tourism Sector consequent on declaring Tourism as an industry was the concession in electricity charges. The Kerala State Electricity Board has been extending the benefit of electricity tariff concession to new Tourism projects on the basis of the G.O. read as 2nd paper above. It has since been decided as per the G.O. read as 3rd paper above that the subsidy for electricity tariff admissible to industrial consumers, farmers etc. will be disbursed to the beneficiaries by the concerned Departments directly from the financial year 1998-99 onwards.

2. Consequent to the orders issued as 3rd paper above it has become necessary to formulate a new scheme for providing electricity tariff concession to the eligible investors in the Tourism Sector. After considering the matter in detail, Government order that the electricity tariff concession allowable to specified tourism projects will be sanctioned as per the following guidelines

  .a) The following types of units will be eligible for electricity tariff concession
      i) Classified Hotels (1 to 5 star, 5 star deluxe, heritage etc.)
      ii) Motels approved by Department of Tourism, Government of Kerala.
     iii) Restaurants (approved by Classification Committee of Government of India)
     iv) Amusement Parks and Recreation Centers approved by Department of Tourism, Government of Kerala.
     v) Ropeways at tourist centres. vi) Institutions teaching surfing, gliding, trekking and similar activities, which promote tourism, approved by Department of          Tourism, Government of Kerala
.   vii) Ayurveda centres with tourism potential approved by Department of Tourism, Government of Kerala.
   viii)  Heritage homes approved by Department of Tourism, Government of Kerala under Grihastali scheme

 .b) In all cases listed above, the classification/approval certificate from Department of Tourism, Government of Kerala/Government of India as the case may be, shall be necessary for granting concessional tariff.

 c) The Government of Kerala will pay the difference between the commercial tariff and the industrial tariff, as subsidy. But subsidy shall not be paid for the electricity duty, surcharge or other Government levies. The tariff is inclusive of both demand charge/fixed charges as the case may be plus energy charges.

d) The period for which concession would be made available to the tourism units will be limited only to the first five years from the date of effective certification by the Department of Tourism, Government of Kerala. The concession will not be extended for any further period.

e) The tourism units, which is eligible for electricity tariff concession, shall remit the electricity charge at the commercial rate prescribed by Kerala State Electricity Board and thereafter claim reimbursement for the eligible subsidy amount by applying to the Department of Tourism, Government of Kerala in the form appended, enclosing certificate regarding the payment of current charges and the amount to be reimbursed after calculating the difference between the two tariffs from the Kerala State Electricity Board offices. They should also produce proof regarding the classification / approval as elaborated in clause 2 (b) above.

f) The eligible subsidy on electricity charge will be disbursed directly to the beneficiaries by the Director of Tourism, Government of Kerala on half yearly basis.


3. These orders will be operative from 15-5-1999, the effective date from which Kerala State Electricity Board has withdrawn the concessional tariff offered to tourism units. The tourism units, which have received certificate of eligibility for tariff concession from Director, Department of Tourism, have to produce a certificate from the Kerala State Electricity Board regarding the total period for which they have enjoyed the concessional tariff. They will be eligible for concessional tariff only for a period of five years including the period for which they have already enjoyed the concession tariff. They will be eligible for concessional tariff only for a period of five years including the period for which they have already enjoyed the concession. i.e., if the tourism unit has already enjoyed tariff for a period of three years prior to 15-5-1999, they will eligible for concessional tariff for a further period of two years only. This period will be counted from the effective date orignally certified by the Director of Tourism, Government of Kerala for granting concessional tariff for three years. If any tourism unit has already enjoyed concessional tariff for a period of five years or more prior to 15-5-1999, it will not be eligible for any extension of the period of concession.

4.
a) The tourism units which have undertaken expansion/modernisation after five years of availing concessional tariff will be eligible for concessional tariff for a period of further five years for the additional electricity charges paid by the unit due to expansion/modernation. The tourism units which have been expanded / modernised will be granted concessional tariff subject to the condition that the average monthly consumption due to modernisation/expansion during a period of consecutive six months shall be more than 50% of the electricity consumption before modernisation/expansion.

b) The average monthly electricity consumption during a period of 12 months immediately before modernisation/expansion shall be taken as basis for computation of the excess consumption after modernisation/expansion. The subsidy element will be the difference between the commercial tariff and industrial tariff of the additional consumption, as mentioned in para 2

(c). The applicant has to produce a certificate from Kerala State Electricity Board on the amount to be reimbursed due to modernisation/expansion. c) The institutions which undertake expansion/modernisation shall install separate meter and allied equipments like CT/PT etc at the cost of consumers, so as to measure the quantity of power supplied to expanded/modernised portion of the Institutions.


5. The expenditure towards payment of electricity charges in terms of these orders will be debited to the head of account "3452-80-800-92(26) Subsidy for creation of infrastructure facilities in private sector (Plan)".

6. Government are also pleased to ratify the directions issued by Kerala State Electricity Board in the Board Orders read as 5th to 7th paper above.

7. These orders are being issued with the concurrence of the Power Department.