The Industries in Odisha have opposed hike in electricity duty for captive power plants urging the state government for a roll back.
The Odisha government had increased electricity duty for captive power plants by 83% from INR 0.30/kWh (kilowatt-hours) to INR 0.55/kWh.
Electricity duty is charged on power consumption and is applied per unit of electricity consumed. Steel and Aluminium Industries require power to carry out production process. Thus higher the electricity consumed by them, higher will be the electricity duty amount which is paid to the state government.
The recent rise in electricity duty could increase Aluminium production by INR 4000/MT and steel production by INR 400/MT in the state.
Leading Industries in Odisha including NALCO, HINDALCO, JSPL, Nav Bharat, Tata Steel, and Vedanta held up a meeting with representatives of associations such as Confederation of Indian industry (CII), Captive Power plant Federation and Aluminium association of India to discuss on the recent hike in electricity duty.
The representatives from Associates have requested Industry bodies to talk up with State Government to roll back hike, citing the raised duty charges will make industries in Odisha un-competitive, as cost of finished products in the state will be more, compared to that in other neighbouring states.
Moreover, Captive Power Plant Federation has seeked court intervention in this issue, and has obtained an interim order to keep the increased amount in separate account till the court’s hearing is over.
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