Industries shifting to adjoining states because of high power tariff in Maharashtra: R B Goenka
| Date :16-Nov-2022 |
Business Bureau
Highlighting the disparity in the power tariff in Maharashtra and adjoining states, the entrepreneurs of the region on Tuesday said that it has become very difficult for them to survive. They also said that the high cost of power in the State is compelling many industries to shift to other states.
Addressing the press conference at Vidarbha Industries Association (VIA), Vice-President of the Association - R B Goenka said the industrial units need support from the Government of Maharashtra for sustainability and to stand in competition with neighboring states. “Other wise industrialists will have no other option but to shut down their units or reduce production or migrate to neighboring states who are offering power at a lower rate.”
In many categories, the power consumers in Maharashtra are paying nearly double the charges applicable in Chhattisgarh and Madhya Pradesh.
VIA President Vishal Agrawal; Chairman - VIA Energy Forum Prashant Mohota; Secretary - VIA Ashish Doshi; Former VIA President Praveen Tapadia, Ashish Chandarana, Pankaj Bakshi, Aneeta Rao and others were also present. Due to the highest tariff in Maharashtra, some of the industries in Vidarbha have already migrated to the neighboring State of Chhattisgarh.
Goenka said that the Government should take immediate steps to remove the imbalance of industrial development in Maharashtra and stop migration of industries. “The industrial units moving out of the State will affect the revenue collection of the Government and also kill the job opportunities here,” he observed. He further said that the Maharashtra Government had declared an incentive scheme in power tariff for Vidarbha and Marathwada, D and D+ areas of Maharashtra and had allocated a sum of Rs 1200 crore for it. “Based on this incentive, many new units, especially MSMEs, have set up new plants which resulted in creating many new jobs. It also increased the number of jobs and GST collections in the region,” he said, adding that the incentive scheme that was declared in 2016 and was applicable for 3 years. It was further extended for a period of next 4 years.
But giving a big shock to the industries of Vidarbha and Marathwada, the past Government had withdrawn the previous incentive scheme violating the promissory estoppel provided by the Government according to which the incentive scheme should have been active upto March 2024 and issued another incentive scheme which has almost reduced the incentives to about 50 per cent of the previous applicable scheme.
Prashant Mohota spoke on the withdrawal and delay in releasing of power subsidy under 2018 -2023 Textile Policy. “Considering the high power tariff and huge availability of cotton within the State, the Government had finalised Rs 2 per unit subsidy for existing as well as new units under the Textile policy scheme of 2018-23. Many units also started enjoying the benefit of this very apt scheme and overall textile business flourished within the State. Unfortunately, now this benefit has been withdrawn for some units in-spite of being given valid reason,” he added.
Vishal Agrawal said a large number of steel manufacturing units have already moved out of the State because of the high power rates. “Apart from this, there has become a regular practice to delay the sanctions requested by the consumers and all the matters are being forwarded with HO Mumbai where consumers are asked to meet the higher officer for getting the work done,” he said.
The VIA office-bearers also expressed their dissatisfaction over the increase in security deposit applicable for power consumers. VIA urged the Government to look into the matter and resolved the issues for the development of industries and the region.
