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Odisha industries have opposed 83% steep hike in electricity duty for CPPs

Updated: Jun 21, 2017 08:05:52am
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Odisha industries have opposed 83% steep hike in electricity duty for CPPs

Bhubaneswar, June 21 (KNN) The industries in Odisha have opposed 83 per cent steep hike in electricity duty for Captive Power Plants (CPPs) saying it will affect invetments along with the big and small industries.

The industries have urged the state government for a roll back.

Big industries like NALCO, JSPL, Vedanta, HINDALCO, PPL, MCL, JSL, IMFA, Nava Bharat, Tata Steel, Tata Iron and Sponge, FACOR and MAITHAN as well as representatives of associations like CII, UCCI, Captive Power Plant Federation, FICCI and Aluminium Association of India held a meeting on the recent hike in electricity duty for CPPs.

CMD of NALCO Tapan Kumar Chand, who chaired the meeting, said, the hike of electricity duty from Rs 0.30/kwh to Rs 0.55/kwh will increase the cost of production in the state by Rs 4,000 per tonne in case of aluminium and to Rs 400 per tonne in case of steel. 

The representatives said it will make industries in Odisha un-competitive, severely eroding the competitiveness of products produced in Odisha as compared to that of other neighbouring states and overseas.

They have requested industry bodies to take up with the state government to roll back the steep hike. 

Noting that the Captive Power Plant Federation has already moved court and has obtained an interim order to keep the differential increased amount in a separate account till disposal of the case, industry bodies felt that the government should rethink and revisit the issue.

The MSME sector, which is in the priority list of the government, will also be hit hard by the duty hike, it said.

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