Induction Furnace Association of North India reacts severely to 5% duty on electricity in Punjab
Author(s): City Air NewsLudhiana, May 23, 2015: Induction Furnace Association of North India president KK Garg, general secretary Dev Gupta and vice president Sandeep Jain has said Punjab Government is going to impose Infrastructure Development...
cityairnews
May 23, 2015 12:30
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Ludhiana, May 23, 2015: Induction Furnace Association of North India president KK Garg, general secretary Dev Gupta and vice president Sandeep Jain has said Punjab Government is going to impose Infrastructure Development duty of 5% on Electricity which will increase electricity duty from 13% to 18% which will be the highest in the country. “It will adversely hit the Punjab’s already ailing steel & induction furnace industry due to highest tariff of electricity in the state compared to other states in India”, they said in a statement today, adding already 50% Induction furnace units have closed down. Those who are in operation have cut down their production to cover minimum electricity expenses which again are very high in Punjab. Most of the units are running only 8 to 12 hours.
Further, they said at present electricity Tariff isRs. 6.33 per units for PIU (Power Intensive Units) in Punjab. Electricity duty @ 13% (82 Paisa per unit) and Octroi of 10 paisa per units are additional taxes on it. Now with imposition of ID fee of 5% (35 Paisa approx.) the total rate will come to Rs. 7.57 per Kwh. Along with this the 1% infrastructure tax on diesel will increase the freight rates which again will be heavy blow to Punjab’s industry being a border state away from major sea ports.
“With this new Tax neighboring states like Himachal, Uttaranchal and J&K get benefited. Finish products from these states will come freely on cheap rates in Punjab”, they said, adding, “ Electricity tariffs are very cheap in these states. It will become more difficult for local manufacturers to compete with these states.”
They further pointed out that above all with closure of more industry with this increased cost, the projected increase in revenue will be nullified with decreased VAT collection and further decrease in electricity bills.
Date:
Saturday, May 23, 2015
