Cut in power duty on industry wishlist

Ambika Sharma

Tribune News Service

Solan, February 24

With high electricity duty making power costlier for the industry, investors are demanding relaxation in the duty in the Budget to be announced for the next financial year soon.

The investors rued that though the state government had announced freezing of the power tariff for five years, an increase in the demand charges and duty had enhanced its cost from 12 per cent to 25 %. The investors also demanded a cut in the infrastructure development charges, rued Satish Goyal, president, Himachal Chamber of Commerce and Industry. Goyal said the high power tariff was discouraging the new investors and they had requested the government to bring down these charges. The Parwanoo Industries Association (PIA) has demanded a single window mechanism for small and medium industries as this practice was only available for large industries. An online application and clearance from all related departments should also be extended to tiny, small and medium industries.

PIA senior vice-president said a comprehensive consolidated single application form should be adopted which should include clearances from all departments in 15 days.

They laid stress on the conversion of industrial plots on lease to freehold. Bansal said the industry would welcome such a step as presently the lessor (HIMUDA) was getting income on sale and transfer of lease, whereas any such revenue should go to the local municipal body for the development of township. Industrial areas in the neighbourhood such as Chandigarh had already been shifted to freehold system. Moreover, if the plots were freehold then on the transfer of plots the state would earn higher revenue in terms of registration fee.

He said the industry faces lots of problems while raising loans against leased property as there were a number of parties while mortgaging the land and building. Thus the procedure became cumbersome as compared to neighbouring states. The CII Himachal chapter demanded Baddi rail link. CII Chairman Sanjay Khurana said the state should pursue with Haryana the issue of land acquisition which had been hanging fire.