The state government has given a huge blow to the industries of Himachal by increasing the rates of electricity duty. The state government has increased the rates of electricity duty by up to 19 percent. Apart from this, the concessional rate of electricity duty given to new and expanded units has also been withdrawn from September 1, due to which the entrepreneurs are feeling cheated.
Various industrial organizations including entrepreneurs across the state have expressed strong opposition to this step of the state government, terming it fatal for the industries and demanding its immediate withdrawal. Entrepreneurs said that it has become difficult to run the industries which are already struggling with poor infrastructure, lack of production and adverse conditions on the economic front in the industrial areas of the state.
It is being told that under the new rates, electricity duty for industries falling under HT has been increased from 11 percent to 19 percent, while for EHT industries it has been increased from 13 percent to 19 percent. Even small and medium industries have seen huge growth to the extent of 11 percent and 17 percent respectively. Electricity duty on cement plants has been increased from 17 percent to 25 percent. Not only this, electricity duty at the rate of 45 paise per unit has also been imposed on electricity generation by DG Set. Apart from this, the cascading effect of electricity duty is likely to increase the price of cement and steel as its rate has been increased from 17 to 25 per cent on cement plants and to 19 per cent for steel units. Due to this, the cost of building a house will increase further in the coming days. Rajiv Singla, a steel manufacturer in Baddi, said that the transportation cost in Himachal is already high, apart from this, the roads and bridges in the industrial area are in bad condition, the revised electricity tariff rates will break the back of the industries.
