Hike in power duty, water cess choking industries in Odisha

BHUBANESWAR: Even as the Odisha Government claims to have developed a conducive environment for rapid industrialisation in the State, industrial houses are opposed to multi-fold increase in various statutory duties and cess, which are higher than the neighbouring States.

The duties and cess that have been revised upward in the recent years are electricity duty and water cess, two major components for most of the industries. While electricity duty has been revised from 20 paisa per unit to 55 paisa per unit in just less than two years, water cess has been revised from 67 paisa per M³ to Rs 3.40 per M³, an increase of almost five times than that of 2010.

“It will not only hamper the process of industrialisation, but also force many industries to reconsider their proposed projects in the State. Some Paper Millls have moved to the High Court against the increased water cess and the matter is sub-judice,” said a senior functionary of the Utkal Chamber of Commerce and Industry.

Some of industrial houses alleged that the State Government is yet to fulfil incentive commitment made in Industrial Policy Resolutions (IPRs) introduced in 2001 and 2007. Due to the delay in granting such incentives, they said, the industries are now being forced by Energy Department to pay electricity duty even for the period wherein the Government was duty bound to extend incentives.

“Many industries were set up in the past on the commitment of various schemes and incentives introduced by the State Government. But, for how many years they have wait to avail those incentives. Is it ease of doing business that the State has been drumming about?” asked an entrepreneur on the condition of anonymity. Though various industrial associations have taken up the issue of delay in sanction of incentives with the Industries Department, the State Government is yet to take a call on it.

S Chakravorty of Steel Re-rolling Mills’ Association of India, one of the foremost industry bodies in the country said the Government has been apprised several times on granting of incentives, including exemption of electricity duty under IPR 2001. “The association has also requested for consideration of decrease in electricity duty and various other issues with the Industry Department, but to no avail. Many units are also facing various problems in operation of their plants due to local disturbances,” he added.

Meanwhile, a delegation of the association is planning to meet Industries Minister to apprise him of the issues with a request to resolve those soon.