Solan, Sept 9 (KNN) Industry associations in Himachal Pradesh have opposed the state government’s decision to hike the electricity duty from 1 to 19 per cent.

The state government has also decided to roll back the concessional rate of ED granted to new and expanding units from September 1.

Rajiv Aggarwal, president, Baddi Barotiwala Nalagarh Industries Association (BBNIA) said, “This decision of the state government to increase duty from 1 to 19 per cent is a big blow to the competitiveness of the industry. It will impact all consumers, especially industrial establishments with small, medium and large industries facing 22 per cent, 41 per cent and 52 to 58 per cent hike respectively.”

Investors rued that the concession in duty on captive generation for standby provision and on green energy e.g. solar power has also been withdrawn and a duty of 45 paise per unit has instead been imposed on them.

These incentives were promised to the investors under the industrial policy announced by the previous government. 

Rakesh Bansal, Convenor CII, panel on Power, said, “The investors are feeling cheated by the government for having withdrawn the incentives which lured them for setting up new units or for undertaking expansion. Many such units have become loss making overnight by the decision.”

The cascading impact of ED would trigger hike in the price of cement and steel as ED on cement plants has been increased from 17 to 25 per cent and upto 19 per cent for steel units, reported Tribune.

This would further push up the cost of constructing houses as power comprises 60 per cent of their raw material.  (KNN Bureau)