Electricity Duty Hike

India's electricity generation rose 5.99% in March from the corresponding period last year, for its fastest pace of growth in three months, government data showed.

Industry body, Associated Chambers of Commerce of India (Assocham) today opposed the recent hike in electricity duty by 25 paise/unit for the captive power plants (CPP), which generate electricity for their own consumption. Recently, the state cabinet had given its nod to enhance the electricity duty from 30 paise per unit to 55 paise per unit. "Incentives in whatever forms should be made available to the industries in the nascent stage for three to five years.One such incentive which is coming in the way for metallurgical industry is electricity duty. The duty is the highest in Odisha which is 55 paise", Sandeep Jajodia, president of Assocham told media persons here. The rate needs to be revisited and recalled, he said, adding that the metallurgy industry needs captive power to support the manufacturing process. He suggested that the Chhattisgarh model of incentives on electricity duty should be implemented. Endorsing the views of Jajodia, TK Chand, chairman-cum-managing director, ..