Levy of energy development cess

(1) Subject to the exceptions specified in section 4, every distributor of electrical energy shall pay to the State Government at the prescribed time and in the prescribed manner an energy development cess at the rate of one paisa per unit on the total units of electrical energy sold or supplied to a consumer or consumed himself or his employees during any month ; Provided that no cess shall be payable, in respect of electric energy- (i) sold or supplied to the Government of India including Indian Railways ; (ii) consumed in the process of generation, transmission and distribution by the distributor of electrical energy. Explanation.-In this sub-section "month" means such period as may be prescribed. (2) The proceeds of cess under sub-section (1) shall first be credited to the Consolidated Fund of the State and the State Government may, at the commencement of each financial year after due appropriation has been made by law, withdraw there-from, the equivalent to the proceeds of cess realized by the State Government in the preceding financial year and shall place it to credit of a separate fund to be called The Energy Development Fund and so credited to the said fund shall be expenditure charged on the Consolidated Fund of the State Government of Madhya Pradesh. (3) The amount in the credit of the fund shall, at the discretion of the State Government be utilised for- (a) research and development in the field of energy including electrical energy as well as other conventional and non-conventional sources of energy ; (b) improving the efficiency of generation, transmission, distribution and utilisation of energy including reduction of losses in transmission and distribution ; (c) research in design, construction, maintenance, operation, and materials of the equipment used in the field of energy with a view to achieve optimum efficiency, continuity and safety ; (d) survey of energy sources including non-perenial sources to alleviate energy shortage ; (e) energy conservation programmes ; (f) extending such facilities and services to the consumers as may be deemed necessary ; (g) creation of a laboratory and testing facilities for testing of electrical appliances and equipments and other equipments used in the field of energy ; (h) programmes of training conducive to achieve any of the above objectives ; (i) transfer of technology in the field of energy ; and (j) any other purposes connected with improvement of generation, transmission, distribution, or utilisation of electrical and other forms of energy, as the State Government may, by notification, specify. Explanation-In this sub-section "energy" includes all conventional and non-conventional forms of energy. (4) If any question arises as to whether the purpose for which the fund is being utilised is a purpose falling under sub-section (3) or not, the decision of the State Government thereon shall be final and conclusive.