Extend 40-paisa power subsidy to all industries, demands CII

The Confederation of Indian Industry (CII) Himachal Pradesh has urged the state government to extend the 40-paisa per unit power subsidy — announced in the recent Budget — to all industries, including small and medium enterprises (SMEs). As per the Budget announcement, the subsidy currently applies only to industries operating at 66kV and above, which primarily benefits power-intensive units (PIUs) such as cement, iron and steel sectors.

Since PIUs make up only a fraction of the state’s industrial landscape, CII has advocated for the inclusion of 11kV and 33kV consumers under the subsidy, ensuring that a larger portion of the state’s industrial ecosystem, particularly SMEs, can benefit.

Deepan Garg, chairman of CII Himachal Pradesh, emphasised that Himachal Pradesh, being a power-surplus state, should maintain low power tariffs as a strategic move to attract new investments and boost revenue generation. He pointed out that the state’s financial challenges necessitate the creation of an investment-friendly ecosystem to help stabilize its economy and improve fiscal prudence.

Highlighting a major concern, CII officials noted that despite being a power-producing state, Himachal Pradesh’s electricity tariffs have now surpassed those of its neighbouring states, making it less competitive for investors.

Sanjay Suri, vice-chairman of CII Himachal Pradesh, strongly urged the state government to reconsider its decision and extend the 40-paisa subsidy to all industries. He stressed that this key policy change would significantly reduce operational costs, enhance financial viability, and promote a self-sustaining industrial ecosystem, ensuring long-term industrial growth in the state.