Power subsidy withdrawal to impact industrial growth in M'wada

Aurangabad, Feb 9:

The industries in Marathwada have proved their uniqueness by increasing their production capacity in the ten months following the corona situation. The government, which has witnessed a qualitative change in the market over time, needs to take an urgent decision to provide power incentives for the industries to continue to run smoothly. It is feared that otherwise the decline in production, the employment crisis will resurface.

The industrialists said, that the rates of electricity in the state, especially for industrial use, have gone up. Neighbouring states of Karnataka, Andhra Pradesh, Telangana, Madhya Pradesh and Goa have lower rates. The industrialists expressed strong resentment over this. The government announced separate incentive packages for Marathwada and Vidarbha. A committee headed by Aurangabad, Amravati and Nagpur divisional commissioners was appointed and a grant of Rs 1,200 crore was announced. During that period, the collection of sales tax in Marathwada was reduced. Increased power rates were not affordable to industries. Power incentives have improved electricity prices, created competition in industries, and increased productivity. Last year, corona posed a crisis for the world. Industries in Marathwada were closed for more than 40 days. Subject to the terms and conditions, the companies gradually started at low capacity. Productivity increased during Diwali. With just two months to go before the end of the financial year, most industries are filling the backlog. With the end of the power incentive subsidy, industries will have to pay electricity rates excluding subsidies. Industries, like other businesses, have had a hard time during the covid period. While it is improving, the industries are facing a crisis due to the closure of electricity tariff subsidy. If the subsidy is removed now, it will once again create problems for the sector. There are fears that reduced competition will have an impact on job creation as well. To prevent this, the state government must see that power incentives be made available for the rest of the period.

Must announce incentives for remaining months

The power incentives given by the government increased the confidence and business of the industries in Marathwada and Vidarbha. Not only did jobs survive, but new jobs were created. At a time when growth is picking up in the wake of the corona outbreak, stopping subsidies just because a certain grant limit has run out is tantamount to stopping the industry cycle. The government should announce the funding of the electricity incentive for the remaining two months as soon as possible and ensure that the confidence of the industry does not diminish said, Mukund Kulkarni, Marathwada zonal chairman, CII.