The Associated Chambers of Commerce and Industry in India (ASSOCHAM) on Friday urged the Odisha Government for exemption of electricity duty to encourage investments in metallurgical plants across the minerals-rich State.
“Metallurgical sector not only provides employment opportunities to unskilled, semi-skilled and skilled people but it also holds the potential to fill State coffers as increase in capacity utilisation will boost demand for raw material thereby adding revenue to the State exchequer,” stated the ASSOCHAM in a letter to Chief Secretary AP Padhi.
The chamber suggested the Odisha Government to refer to the industrial policy of the Chhattisgarh Government, which has already exempted electricity duty for 15 years to promote investment in the State thereby enabling the industry to sustain in initial years of production. “We request the State Government to exempt electricity duty for ferroalloy plants for initial 10-15 years depending upon the size of investment from date of commencement of commercial production that will surely help in making the industry commercially viable,” said ASSOCHAM secretary general DS Rawat.
“After completion of this exemption period, the electricity duty will also be a revenue source to Odisha,” added Rawat.
The letter further highlighted the probable benefits to the Odisha Government, raw materials to metallurgical like iron ore, manganese ore, chrome ore, coal and others would be purchased from the State thereby adding to its revenue in the form of royalty, cess, GST, National Mineral Exploration Trust (NMET), District Mineral Foundation (DMF) and others.
Besides, energy generated from power plants including captive power plant (CPP) would be consumed within Odisha and most of finished products would be sold within the State which would further generate revenue in form of GST, said the ASSOCHAM.