Rajni
North News
Chandigarh, September 21
In a significant move aimed at saving approximately Rs 700 crore annually, the Himachal Pradesh government has officially withdrawn the power subsidy for large-scale industries. The state, which has been grappling with financial constraints, took this step as part of its efforts to enforce fiscal prudence.
Large industries in the state benefitted from a subsidy that ranged from 70 paise to Re 1 per unit of power. Additionally, the government has also withdrawn the 125 units of free power for residents consuming more than 300 units. However, there is still relief on electricity duty for industries, with reductions ranging from 2.5% to 9% for small, medium, and large enterprises.
Industry leaders have voiced concerns that this subsidy withdrawal could have a detrimental impact on Himachal Pradesh’s industrial sector, which employs over seven lakh people and plays a critical role in the state’s economy. Many industries are already struggling with state-level levies, such as additional goods taxes, road taxes, and high transportation costs due to cartelization.
Speaking to the media last month, Rajiv Aggarwal, president of the Baddi Barotiwala Nalagarh Industries Association (BBNIA), highlighted the growing concerns within the industry. Aggarwal warned that industries have already started migrating to neighboring states, which are offering more attractive incentives, fewer taxes, and no cartelization in transportation.
