Discoms want to levy more charges

Your power bills might go straight through the roof if petitions by the three power distribution companies on the tariff are cleared by the Delhi Electricity Regulatory Commission (DERC).

BSES Rajdhani Power Limited, BSES Yamuna Power Limited and Tata Power Delhi Distribution Limited (TPDDL) — have asked the commission for a full power purchase adjustment charges (PPAC). 

This means that apart from the yearly increase of 13% sought by BYPL, which supplies electricity to east and central Delhi, 2% by BRPL (south and west Delhi) and 6.6% sought by TPDDL, which supplies power to north Delhi, they have also asked for a quarterly increase depending on the rate at which they have procured power. 

Discoms have taken the plea that 17 states have already adopted the PPAC model in determining the tariff. DERC, which is reviewing the petitions, is yet to take a call on the matter.

“We had adopted the PPAC mechanism last year but this year we are reviewing it. If full PPAC is given to the discoms, it can increase power bills to the tune of 25% to 30%. For instance, the fixed tariff would be 13% in case of BYPL for the year and an additional 10% increase would mean in reality the tariff would be 26%. This will burden the consumers,” said a senior DERC official. 

According to discoms, a fixed power tariff is unacceptable as during the course of a year power purchase costs keep varying. And many a time, the purchase cost is much more than what is fixed by the DERC. 

“This is why we want a full PPAC so that if we buy costly power, we can charge that amount to the consumers in the next quarter. DERC had adopted this mechanism last year,” said a discom official. 

Sources said the DERC is planning to come up with a comprehensive fixed tariff so that no additional cost has to be taken into consideration. Discoms have cited increase in cost of power purchase and their failure to recover dues for the need to raise tariff. The new tariffs will be applicable from July 1.

with thanks : Hindustan Times : LINK

Anil Sindhwani getting award from BSES Chairman Sh Ramesh Narainan & Jago Grahak fame Sh Bijon Mishra

आय व्यय ब्योरे की सीएजी के पैनल वाले सीए से कराएं जांच : Rashtriy Sahara

बिजली वितरण कंपनियों को डीईआरसी की सलाह नई दिल्ली ( एसएनबी)। विद्युत विनियामक आयोग ने तीनों बिजली वितरण कंपनियों और सरकार को पत्र लिखकर सीएजी के पैनल वाले सीए से खातों की जांच कराने और तीन वर्ष में इस पैनल को बदलने की ताकीद की है। पत्र में लिखा है जब तक हाईकोर्ट में मामला लंबित है तब तक सीएजी के पैनल वाले सीए से खातों की जांच कराएं और हाईकोर्ट का निर्णय आने के बाद उसके दिशा निर्देशों का पालन करें। सोमवार को दिल्ली विद्युत विनियामक आयोग ने राजधानी की बिजली वितरण कंपनी बीएसईएस राजधानी, बीएसईएस यमुना और टीपीडीडीएल के अलावा दिल्ली सरकार को पत्र लिखा है कि जब तक सीएजी मामले की जांच से संबंधित मामला हाईकोर्ट में लंबित है, तब तक तीनों बिजली वितरण कंपनियों के खातों की जांच सीएजी के पैनल वाले सीए से कराई जाए। तीनों बिजली वितरण कंपनियां प्रति तीन वर्ष में यह पैनल बदल लें और दूसरे पैनल से जांच कराएं। जिससे दिल्ली के 42 लाख बिजली उपभोक्ताओं के मन से खातों में हेराफेरी का संशय मिट सके। उन्होंने पत्र में कहा कि राजधानी के बिजली उपभोक्ता जनसुनवाई के दौरान तीनों बिजली वितरण कंपनियों के खातों की जांच सीएजी से कराने की मांग करते हैं, लेकिन सीएजी से संबंधित मामला हाईकोर्ट में विचाराधीन है इसलिए जब तक हाईकोर्ट का निर्णय नहीं आता है तब तक सीएजी के पैनल वाले सीए से खातों की जांच कराई जाए। इस मामले में डीईआरसी केअध्यक्ष पीडी सुधाकर ने कहाकि दिल्ली की बिजली वितरण में बिजली वितरण कंपनियों की भागदारी 51 प्रतिशत और सरकार की 49 प्रतिशत है। बोर्ड ऑफ डायरेक्टर्स में सरकार के भी नुमाइंदे होंगे। इसलिए बिजली वितरण कंपनियों के साथ दिल्ली सरकार को भी पत्र लिखा गया है। गौरतलब है कि राजधानी की बिजली वितरण कंपनियों पर बिजली उपभोक्ता आय व्यय के ब्योरों में हेराफेरी का आरोप लगाते हुए तीनों बिजली वितरण कंपनियों के खातों की जांच सीएजी से कराने की मांग करते रहे हैं। बिजली उपभेक्ताओं की मांग को पूरा करने के लिए डीईआरसी ने यह निर्णय लिया है। जबकि डीईआरसी के इस निर्णय से बिजली उपभोक्ता और आरडब्ल्यूए के पदाधिकारी संतुष्ट नहीं है।  आरडब्ल्यूए ज्वांइट फ्रंट के अध्यक्ष बीएस बोहरा ने कहा कि सीएजी के पैनल वाले सीए को खातों की जांच के लिए बिजली वितरण कंपनियां नियुक्त करेंगी तो जो कंपनी जिस सीए को नियुक्त करेगी वह उसी के हितों की पूर्ति करेंगी। इसलिए ईमानदारी से खातों की जांच होना संभव नहीं है। जबकि पूर्वी दिल्ली आरडब्ल्यूए के अध्यक्ष अनिल वाजपेयी ने कहा कि सीएजी द्वारा नियुक्त सीए अगर जांच करें तो दूध का दूध और पानी का पानी हो सकता है। अगर सीएजी के पैनल से बिजली वितरण कंपनियों के खातों की जांच कराई जाती है तो पैनल वाले सीए से बिजली वितरण कंपनियों के खातों की ईमानदारी से जांच संभव नहीं है। जबकि ग्रेटर कैलाश आरडब्ल्यूए के राजीव कांकरिया ने कहा कि बिजली उपभोक्ताओं की मांग बिजली वितरण कंपनियों के खातों की जांच सीएजी से कराने की है। उन्होंने कहा कि दिल्ली विद्युत विनियामक आयोग बिजली वितरण कंपनियों का हित देखती है इसलिए सीएजी के पैनल वाले सीए से खातों की जांच कराने को तैयार हो गई है। उन्होंने कहाकि डीईआरसी की राय से बिजली उपभोक्ता सहमत नहीं है। उन्होंने कहाकि बिजली उपभोक्ता बिजली वितरण कंपनियों के खातों की जांच सीएजी से कराने के लिए धरना और आंदोलन करते रहेंगे। डीईआरसी ने तीनों बिजली वितरण कंपनियों और सरकार को लिखा पत्र

BSES fails to clear debt, customers pay the price

Several localities of the national Capital had to pay for the financial callousness of power distribution company (discom) BSES and faced power cuts on Tuesday.

The BSES owes over Rs700 crore to Power Grid Corporation of India Limited (PGCIL). With the discom failing to clear the due and submit a Letter of Credit on time, the PGCIL stopped supply to the discom from Tuesday midnight. Delhi witnessed a power crunch of around 500 megawatt, necessitating load-shedding. The BSES, however, said that the PGCIL’s move was arbitrary and unjustified.

BSES’ two discoms — BSES Rajdhani and BSES Yamuna —  together owe the sum of about Rs700 crore to PGCIL. “The Letter of Credit is a guarantee letter that the company gets from a bank for taking a loan or picking up a commodity on credit from a buyer. BSES was to furnish the same to the PGCIL but failed and as a result the PGCIL stopped supplies starting Tuesday midnight,” a senior official of the power department said.

The two discoms, which serve South, West, Central, and East Delhi areas, had a peak supply shortfall of 550 megawatt during the day time on Tuesday. This came down to 204 megawatt by the evening. Parts of central, south and west Delhi witnessed power cuts lasting for one to two hours on Tuesday.

While the Transco officials confirmed the disruption in the power supply, the BSES denied it and said BSES Rajdhani, which supplies power to South, West and Central Delhi, had no dues whatsoever.

“Other States fare worse when it comes to clearing their dues with the PGCIL. Of the total amount of Rs321 crore due for the year, BRPL has already paid Rs308 crore to PGCIL. Of the remaining Rs13 crore, Rs5 crore is due as refund from PGCIL, leaving only Rs8 crore dues — which is a surcharge component,” a BSES officer explained. While the BSES explained its accounts for Rajdhani, it failed to do so for BSES Yamuna. BSES Yamuna supplies power to Trans Yamuna Region. The company has also approached the Delhi Government to resolve the issue.

The National Thermal Power Corporation too has written to BSES to pay its dues and warned of snapping supply if it failed to do so. The BSES however said that power cuts in several parts of Delhi were because of local problems. “Whatever load-shedding took place was a result of local problems and had nothing to do with the PGCIL,” said the BSES officer.

with thanks : The Pioneer : LINK

Jama Masjid power dues puts area in darkness:Residents

New Delhi : The spat between the Imam of Jama Masjid and the Delhi Wakf Board over payment of electricity dues of over Rs 4 crore has once again left residents of the area in darkness. 

 Residents said supply to the area is snapped for over three hours each morning as penalty for the mosque’s unpaid dues. 

The power distribution company BSES Yamuna (BYPL) has, however, blamed Metro construction in the area for the abrupt power outages. 

Saleem Hasan, a 64-year-old resident of Chudiwalan near Jama Masjid, told Newsline that the outages during morning hours each day affected students and office-goers. 

“Every morning, there is no electricity for at least three hours. Local officials say power theft is high in this area. That could be possible, but there are other law-abiding citizens who always pay their bills on time. Some of us have been getting inflated bills, which we still pay. With Board exams near, children are really finding it difficult to cope,” Hasan said. 

He said the situation gets aggravated as power cuts also affect water supply. “If there is no electricity from 8 am to 11 am, there is no water either. Who gets water without using motors these days? The truth is that there was never any major power supply issue in the area, until the issue of unpaid dues of Jama Masjid came to the fore,” Hasan said. 

When contacted, Chief Minister Sheila Dikshit said the issue of unpaid electricity dues of Jama Masjid was indeed a matter of concern. “But I can assure you there is no power shortage or power cut in the area. Jama Masjid and its vicinity is a much-visited area, and we can’t have blackouts there,” Dikshit said. 

“There is no discrepancy on any ground with our consumers of East or Central Delhi. But in areas like Jafrabad, Delhi Gate, Krishna Nagar, etc., the DMRC is undertaking Metro work. Due to this, at times, our cables and feeders get damaged. However, as soon as these are spotted, they are immediately attended to by our operations and maintenance teams and the supply is restored,” a senior BSES official said. 

While the Jama Masjid has run up a power bill of Rs 4.16 crore as the charges have not been paid for the past several years, there is an ongoing spat between the Imam of Jama Masjid, Maulana Syed Ahmed Bukhari, and Delhi Wakf Board, each holding the other responsible for clearing the dues. 

With neither ready to take up responsibility, residents in the vicinity of the mosque said they have been bearing the brunt of regular power cuts since September last year. 

with thanks : Indian Express : LINK : 

No payment in sight for regularised colonies’ layout plans

New Delhi : Commissioners of the three corporations failed to make headway regarding payment for layout plans for regularised colonies, in a meeting with representatives of residents’ welfare associations (RWA). Last week, the Director of Local Bodies had asked them to hold meetings with RWAs because the government cited shortage of funds. 

“Payment for layout plans is the secondary issue. The RWAs were reluctant to approve the layout plans of their colonies. They are apprehensive as the layout needs to be in accordance with the Master Plan. Their representatives are not confident about their authority over other RWA members,” East corporation commissioner S S Yadav said. 

According to a senior official, in a recent meeting, the Director of Local Bodies had asked the commissioners to meet representatives “preferably by February 26”. 

The commissioners were told to sort out issues pertaining to the finalisation and approval of layout plans of regularised colonies. Senior officials said layout plans will be finalised only after RWAs cooperate. 

A senior official in the Town Planning department said the Director of Local Bodies was told that RWAs might not agree to pay, in earlier meetings, but the meeting with RWAs was ordered. 

The official said the institutes and the corporations are ready with survey reports of 15 regularised colonies. 

“We have done an extensive survey of the colonies and have finalised the logistics based on the ground realities. There are approximately 40 families in one acre and we have 300 acres as regularised colonies. Making layout plan for each acre costs around Rs 1 lakh, which will be borne by families living in that acre. Now that the government has refused to pay, we need to find a way to pay these institutes,” the official said. 

Almost a week ago, the Director of Local Bodies had asked them to immediately send letters to RWAs, asking them to submit demand drafts in favour of IP University, Jamia Millia Islamia and School of Planning and Architecture, for preparation of layout plans. 

“The letters were dispatched on February 15 and the meeting was held, but it could not achieve any breakthrough,” the official said. 

with thanks : Indian Express : LINK : for detailed news.

Commissioners of the three corporations failed to make headway regarding payment for layout plans for regularised colonies, in a meeting with representatives of residents' welfare associations (RWA).

Last week, the Director of Local Bodies had asked them to hold meetings with RWAs because the government cited shortage of funds.

"Payment for layout plans is the secondary issue. The RWAs were reluctant to approve the layout plans of their colonies. They are apprehensive as the layout needs to be in accordance with the Master Plan. Their representatives are not confident about their authority over other RWA members," East corporation commissioner S S Yadav said.

According to a senior official, in a recent meeting, the Director of Local Bodies had asked the commissioners to meet representatives "preferably by February 26".

The commissioners were told to sort out issues pertaining to the finalisation and approval of layout plans of regularised colonies. Senior officials said layout plans will be finalised only after RWAs cooperate.

- See more at: http://www.indianexpress.com/news/no-payment-in-sight-for-regularised-colonies-layout-plans/1079640/#sthash.3o7J33lT.dpuf

Commissioners of the three corporations failed to make headway regarding payment for layout plans for regularised colonies, in a meeting with representatives of residents' welfare associations (RWA).
Last week, the Director of Local Bodies had asked them to hold meetings with RWAs because the government cited shortage of funds.
"Payment for layout plans is the secondary issue. The RWAs were reluctant to approve the layout plans of their colonies. They are apprehensive as the layout needs to be in accordance with the Master Plan. Their representatives are not confident about their authority over other RWA members," East corporation commissioner S S Yadav said.
According to a senior official, in a recent meeting, the Director of Local Bodies had asked the commissioners to meet representatives "preferably by February 26".
The commissioners were told to sort out issues pertaining to the finalisation and approval of layout plans of regularised colonies. Senior officials said layout plans will be finalised only after RWAs cooperate.
- See more at: http://www.indianexpress.com/news/no-payment-in-sight-for-regularised-colonies-layout-plans/1079640/#sthash.3o7J33lT.dpuf

Commissioners of the three corporations failed to make headway regarding payment for layout plans for regularised colonies, in a meeting with representatives of residents' welfare associations (RWA).
Last week, the Director of Local Bodies had asked them to hold meetings with RWAs because the government cited shortage of funds.
"Payment for layout plans is the secondary issue. The RWAs were reluctant to approve the layout plans of their colonies. They are apprehensive as the layout needs to be in accordance with the Master Plan. Their representatives are not confident about their authority over other RWA members," East corporation commissioner S S Yadav said.
According to a senior official, in a recent meeting, the Director of Local Bodies had asked the commissioners to meet representatives "preferably by February 26".
The commissioners were told to sort out issues pertaining to the finalisation and approval of layout plans of regularised colonies. Senior officials said layout plans will be finalised only after RWAs cooperate.
- See more at: http://www.indianexpress.com/news/no-payment-in-sight-for-regularised-colonies-layout-plans/1079640/#sthash.3o7J33lT.dpuf

Commissioners of the three corporations failed to make headway regarding payment for layout plans for regularised colonies, in a meeting with representatives of residents' welfare associations (RWA).
Last week, the Director of Local Bodies had asked them to hold meetings with RWAs because the government cited shortage of funds.
"Payment for layout plans is the secondary issue. The RWAs were reluctant to approve the layout plans of their colonies. They are apprehensive as the layout needs to be in accordance with the Master Plan. Their representatives are not confident about their authority over other RWA members," East corporation commissioner S S Yadav said.
According to a senior official, in a recent meeting, the Director of Local Bodies had asked the commissioners to meet representatives "preferably by February 26".
The commissioners were told to sort out issues pertaining to the finalisation and approval of layout plans of regularised colonies. Senior officials said layout plans will be finalised only after RWAs cooperate.
- See more at: http://www.indianexpress.com/news/no-payment-in-sight-for-regularised-colonies-layout-plans/1079640/#sthash.3o7J33lT.dpuf

Commissioners of the three corporations failed to make headway regarding payment for layout plans for regularised colonies, in a meeting with representatives of residents' welfare associations (RWA).
Last week, the Director of Local Bodies had asked them to hold meetings with RWAs because the government cited shortage of funds.
"Payment for layout plans is the secondary issue. The RWAs were reluctant to approve the layout plans of their colonies. They are apprehensive as the layout needs to be in accordance with the Master Plan. Their representatives are not confident about their authority over other RWA members," East corporation commissioner S S Yadav said.
According to a senior official, in a recent meeting, the Director of Local Bodies had asked the commissioners to meet representatives "preferably by February 26".
The commissioners were told to sort out issues pertaining to the finalisation and approval of layout plans of regularised colonies. Senior officials said layout plans will be finalised only after RWAs cooperate.
- See more at: http://www.indianexpress.com/news/no-payment-in-sight-for-regularised-colonies-layout-plans/1079640/#sthash.3o7J33lT.dpuf

Commissioners of the three corporations failed to make headway regarding payment for layout plans for regularised colonies, in a meeting with representatives of residents' welfare associations (RWA).
Last week, the Director of Local Bodies had asked them to hold meetings with RWAs because the government cited shortage of funds.
"Payment for layout plans is the secondary issue. The RWAs were reluctant to approve the layout plans of their colonies. They are apprehensive as the layout needs to be in accordance with the Master Plan. Their representatives are not confident about their authority over other RWA members," East corporation commissioner S S Yadav said.
According to a senior official, in a recent meeting, the Director of Local Bodies had asked the commissioners to meet representatives "preferably by February 26".
The commissioners were told to sort out issues pertaining to the finalisation and approval of layout plans of regularised colonies. Senior officials said layout plans will be finalised only after RWAs cooperate.
- See more at: http://www.indianexpress.com/news/no-payment-in-sight-for-regularised-colonies-layout-plans/1079640/#sthash.3o7J33lT.dpuf

Commissioners of the three corporations failed to make headway regarding payment for layout plans for regularised colonies, in a meeting with representatives of residents' welfare associations (RWA).
Last week, the Director of Local Bodies had asked them to hold meetings with RWAs because the government cited shortage of funds.
"Payment for layout plans is the secondary issue. The RWAs were reluctant to approve the layout plans of their colonies. They are apprehensive as the layout needs to be in accordance with the Master Plan. Their representatives are not confident about their authority over other RWA members," East corporation commissioner S S Yadav said.
According to a senior official, in a recent meeting, the Director of Local Bodies had asked the commissioners to meet representatives "preferably by February 26".
The commissioners were told to sort out issues pertaining to the finalisation and approval of layout plans of regularised colonies. Senior officials said layout plans will be finalised only after RWAs cooperate.
- See more at: http://www.indianexpress.com/news/no-payment-in-sight-for-regularised-colonies-layout-plans/1079640/#sthash.3o7J33lT.dpuf

Commissioners of the three corporations failed to make headway regarding payment for layout plans for regularised colonies, in a meeting with representatives of residents' welfare associations (RWA).
Last
- See more at: http://www.indianexpress.com/news/no-payment-in-sight-for-regularised-colonies-layout-plans/1079640/#sthash.3o7J33lT.dpuf

Commissioners of the three corporations failed to make headway regarding payment for layout plans for regularised colonies, in a meeting with representatives of residents' welfare associations (RWA).
Last week, the Director of Local Bodies had asked them to hold meetings with RWAs because the government cited shortage of funds.
"Payment for layout plans is the secondary issue. The RWAs were reluctant to approve the layout plans of their colonies. They are apprehensive as the layout needs to be in accordance with the Master Plan. Their representatives are not confident about their authority over other RWA members," East corporation commissioner S S Yadav said.
According to a senior official, in a recent meeting, the Director of Local Bodies had asked the commissioners to meet representatives "preferably by February 26".
The commissioners were told to sort out issues pertaining to the finalisation and approval of layout plans of regularised colonies. Senior officials said layout plans will be finalised only after RWAs cooperate.
A senior official in the Town Planning department said the Director of Local Bodies was told that RWAs might not agree to pay, in earlier meetings, but the meeting with RWAs was ordered.
The official said the institutes and the corporations are ready with survey reports of 15 regularised colonies.
"We have done an extensive survey of the colonies and have finalised the logistics based on the ground realities. There are approximately 40 families in one acre and we have 300 acres as regularised colonies. Making layout plan for each acre costs around Rs 1 lakh, which will be borne by families living in that acre. Now that the government has refused to pay, we need to find a way to pay these institutes," the official said.
Almost a week ago, the Director of Local Bodies had asked them to immediately send letters to RWAs, asking them to submit demand drafts in favour of IP University, Jamia Millia Islamia and School of Planning and Architecture, for preparation of layout plans.
"The letters were dispatched on February 15 and the meeting was held, but it could not achieve any breakthrough," the official said.
- See more at: http://www.indianexpress.com/news/no-payment-in-sight-for-regularised-colonies--layout-plans/1079640/0#sthash.31Vl8iyI.dpuf

Commissioners of the three corporations failed to make headway regarding payment for layout plans for regularised colonies, in a meeting with representatives of residents' welfare associations (RWA).
Last week, the Director of Local Bodies had asked them to hold meetings with RWAs because the government cited shortage of funds.
"Payment for layout plans is the secondary issue. The RWAs were reluctant to approve the layout plans of their colonies. They are apprehensive as the layout needs to be in accordance with the Master Plan. Their representatives are not confident about their authority over other RWA members," East corporation commissioner S S Yadav said.
According to a senior official, in a recent meeting, the Director of Local Bodies had asked the commissioners to meet representatives "preferably by February 26".
The commissioners were told to sort out issues pertaining to the finalisation and approval of layout plans of regularised colonies. Senior officials said layout plans will be finalised only after RWAs cooperate.
A senior official in the Town Planning department said the Director of Local Bodies was told that RWAs might not agree to pay, in earlier meetings, but the meeting with RWAs was ordered.
The official said the institutes and the corporations are ready with survey reports of 15 regularised colonies.
"We have done an extensive survey of the colonies and have finalised the logistics based on the ground realities. There are approximately 40 families in one acre and we have 300 acres as regularised colonies. Making layout plan for each acre costs around Rs 1 lakh, which will be borne by families living in that acre. Now that the government has refused to pay, we need to find a way to pay these institutes," the official said.
- See more at: http://www.indianexpress.com/news/no-payment-in-sight-for-regularised-colonies-layout-plans/1079640/#sthash.QlpPp3w1.dpuf

Commissioners of the three corporations failed to make headway regarding payment for layout plans for regularised colonies, in a meeting with representatives of residents' welfare associations (RWA).
Last week, the Director of Local Bodies had asked them to hold meetings with RWAs because the government cited shortage of funds.
"Payment for layout plans is the secondary issue. The RWAs were reluctant to approve the layout plans of their colonies. They are apprehensive as the layout needs to be in accordance with the Master Plan. Their representatives are not confident about their authority over other RWA members," East corporation commissioner S S Yadav said.
According to a senior official, in a recent meeting, the Director of Local Bodies had asked the commissioners to meet representatives "preferably by February 26".
The commissioners were told to sort out issues pertaining to the finalisation and approval of layout plans of regularised colonies. Senior officials said layout plans will be finalised only after RWAs cooperate.
A senior official in the Town Planning department said the Director of Local Bodies was told that RWAs might not agree to pay, in earlier meetings, but the meeting with RWAs was ordered.
The official said the institutes and the corporations are ready with survey reports of 15 regularised colonies.
"We have done an extensive survey of the colonies and have finalised the logistics based on the ground realities. There are approximately 40 families in one acre and we have 300 acres as regularised colonies. Making layout plan for each acre costs around Rs 1 lakh, which will be borne by families living in that acre. Now that the government has refused to pay, we need to find a way to pay these institutes," the official said.
- See more at: http://www.indianexpress.com/news/no-payment-in-sight-for-regularised-colonies-layout-plans/1079640/#sthash.QlpPp3w1.dpuf

Delhi govt slaps VAT on medical implants

NEW DELHI: Drugs used during hospital treatment and all medical implants such as heart stents, pacemakers and those used in dental procedures are set to become costlier in the capital, with the government deciding to impose value added tax on these products. 

Delhi government on Sunday issued a public notice asking hospitals to pay VAT on these items, which may raise costs by around 5%. It wasn't immediately clear if this would be covered under medical insurance. 

"Administering of drugs, medicines, inserting implants during diagnostic tests and treatment, including package treatment constitute 'sales' and are taxable. We are not imposing any new tax but notifying existing laws," said Prashant Goyal, Delhi VAT commissioner. 

Goyal said there was no proposal to levy tax on services such as doctors' consultation or surgery fee. 

He said most corporate hospitals offer package deals for different surgical procedures which includes the cost of medicines, implant and prosthetics, as required. "It has been seen that many hospitals buy a particular implant or medicine for say Rs 10 but they charge Rs 15 from the patient. Our aim is to make them accountable for the extra profit," he added. 

Delhi has more than 800 private hospitals and nursing homes but barring a few, most do not pay VAT. 

Delhi VAT Act was implemented in 2005 and as per law offenders can be prosecuted for civil and criminal liabilities. But, officials said, most hospitals were dodging the process claiming that providing medicines or implants to patients is a part of treatment and it cannot be considered as 'sales'. 

"The Kerala High Court, while hearing a petition filed by the Kerala private hospitals' association in October last year clearly stated that medicines and consumables sold to patients through hospital pharmacies would be taxable under the VAT Act. It dismissed the latter's plea disputing their liability to register as dealers under the Act," a senior official said. 

Hospitals said the tax would be passed on to the patient. "This will increase the cost of healthcare because the burden of these taxes will finally be borne by patients. The government should find other ways of generating revenue. In my view, import duty on MRI machines and other costly equipment should also be brought down so diagnosis and treatment becomes cheaper," said Rajiv Tewari, director, health and wellness, Rockland hospital. 

Tewari said patients in the hospital were given bills detailing the medicines and equipment used for treatment. 

Dr Pervez Ahmed, managing director of Aapka Urgicare, too termed the government move as a retrograde step and said this would deject entrepreneurs working towards improving the city's health infrastructure. In the Union budget 2011-12, the Centre had proposed imposition of 5% service tax on treatment in private hospitals, paid either by individuals, insurance companies or firms, a move described as 'detrimental' by industry players. The proposal was later dropped. State health minister A K Walia was not available for comment on the new move.

with thanks : Times of India : LINK

Dainik Hindustan Dated 25th Feb, 2013

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300 crore Bail out package to DISCOM's ?

Delhi Govt. has offered a 300 crore bail out package to DISCOM's ( Govt. companies ) plus 245 crores to TPDDL.

Does it mean that the TPDDL that has got 245 crores as a bail out package will withdraw its petition for price hike ? What's about the CAG Audit ?