The Confederation of Indian Industry (CII) has revealed that the relief granted to the industrial sector by abolition of tax on sale of electricity is inadequate considering the heavy burden of power tariff faced by the industry which is highest in the country.
It was added that the high industrial power tariff has affected competitiveness of the local industry spreading sickness all around.
The initiative to rationalise electricity duty need to be extended for the industrial users by reducing present rate of electricity from 20 per cent to 10 per cent for survival of the existing industries.
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CII believes that the rationalised reduced rates of electricity duty would have helped even in attracting new investments in the state and thus also eliminating the need for any subsidy for any class of industrial consumer.
The government has been requested to remove all subsidy and grant all industry at least another 10 per cent further reduction in electricity duty.