Exempt electricity duty to boost investments in state: Assocham to Odisha

Published On: 01, Dec 2017 | Source: business-standard.com

Industry body has requested to exempt electricity duty for ferroalloy plants to encourage investment for setting up of 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 to state exchequer, said in a communication to chief secretary A P Padhi.

The chamber has suggested to refer to the industrial policy of Chhattisgarh, 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 of to exempt electricity duty for ferroalloy plants for initial 10-15 years depending upon the size of investment from date of commencement of commercial products that will surely help in making the industry commercially viable," said secretary general, D S Rawat in a letter to Padhi.

After completion of this exemption period the electricity duty will also be a source to of Odisha, said Rawat.

The letter further highlighted benefits to and said raw materials like iron ore, manganese ore, chrome ore and coal would be purchased from the state thereby adding to its 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 in the state which will further generate in form of GST, it said.

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