Prominent industries of Odisha, including Nalco, JSPl, Vedanta, Hindalco, PPl, MCl, JSl, IMFA, Nava Bharat, Tata Steel, Tata Iron & Sponge, FACOR and Maitahan, as well as representatives of industries’ associations like CII, UCCI, Captive Power Plant Federation, FICCI and Aluminium Association of India on Tuesday had a consultative meeting under the chairmanship of CII Odisha chairman and Nalco CMD Dr Tapan Kumar Chand on the issue of the recent steep hike of 83% in electricity duty for captive power plants (CPPs).
The Aluminium Association of India and others made a presentation on the damaging implications of the steep electricity duty hike on the industries as well as the investment climate in the State. The hike from Rs 0.30/kwh to Rs 0.55/kwh would increase the cost of production by Rs 4,000 per tonne of aluminium metal and by Rs 400 per tonne of steel and make the industries uncompetitive severely as compared to that of the neighbouring States and overseas.
They termed the hike as inappropriate and uncalled for and urged the industries’ bodies to press the State Government to roll back the hike. Notably, the Captive Power Plant Federation has already moved court and obtained an interim order to keep the differential increased amount in a separate account till the disposal of the case.
The industries’ bodies pointed out that all neighbouring States with whom the products of Odisha compete in domestic market are having electricity duty within the range of 0% (Andhra Pradesh and Telangana) to 32% (Chhattisgarh).
The Odisha investment sentiment given a fillip during the Odisha Investors' Summit does not fit into such a steep hike in duties, which are almost killing the industries, they said. The increase in the cost of power input would have a negative impact on export, employment generation and revenue earning, leading to migration of downstream industries to the neighbouring States.