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Exempt electricity duty to boost investments in metallurgical plants: Assocham to Odisha

Industry body Assocham has urged the Government of Odisha for exemption of electricity duty to encourage investments in setting up metallurgical plants across the mineral-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,” noted an Assocham communication addressed to Odisha’s chief secretary and chief development commissioner, Aditya Prasad Padhi.

The chamber has suggested the Odisha government to refer to the industrial policy of 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 of Odisha to exempt electricity duty for Ferro Alloy 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 D.S. Rawat, secretary general of ASSOCHAM.

“After completion of this exemption period the electricity duty will also be a revenue source to govt. of Odisha,” said Rawat in his communication to the chief secretary.

The letter further highlighted the probable benefits to 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, Goods and Services Tax (GST), National Mineral Exploration Trust (NMET), District Mineral Foundation (DMF) and others.

Besides, energy generated from power plants including captive power plant (CPP) will be consumed within the state and majority of finished products will be sold within the state which will further generate revenue in form of GST.

It also said that in addition to the direct or indirect employment, possibility of other peripheral developments will also increase thereby generating job opportunities for local people and development of area.

 

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