You are here: Home » News-CM » Economy » News
Business Standard

Exempt electricity duty to boost investments in metallurgical plants: ASSOCHAM plea to Odisha govt.

Capital Market 

Apex industry body has urged the Government of for exemption of electricity duty to encourage 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 to the state exchequer, noted an communication addressed to Odisha's chief secretary and chief development commissioner, Aditya Prasad Padhi.

The chamber has suggested the 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 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 Mr D.

S. Rawat, secretary general of

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

The letter further highlighted the probable benefits to 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 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 in form of GST.

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.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 04 2017. 11:31 IST