Hike in infra development charges resented

Ambika Sharma

Solan, June 11

Industry associations have demanded rollback of the 1,200 per cent increase in the infrastructure development charges (IDC) imposed by the HP State Electricity Board Limited (HPSEB) on the normative rate from Rs 200 per kilo volt amperes (KVA) to Rs 2,500 KVA.

‘One more blow to industry’

The industry has received one more blow. Infrastructure development charges have been increased to Rs 2,500 per kva from the normative rate of Rs 200 per kva. This is an increase of 1,200 per cent. This will prove to be a deterrent for attracting fresh investment to the state. — Rajiv Aggarwal, President, Baddi Barotiwala Nalagarh industries association

The rates are applicable for a new electricity connection availed by an upcoming industry and will also be applicable to the existing industries undertaking expansion.

“Industry in Himachal Pradesh, which is already passing through a difficult phase, has received one more blow. The infrastructure development charge has been increased to Rs 2,500 per kva from normative rate of Rs 200 per kva. This is an increase of 1,200 per cent. This will prove to be deterrent for fresh investment in the state and existing industry may think twice before doing further expansion,” rued Rajiv Aggarwal, president Baddi Barotiwala Nalagarh Industries Association.

He said that on the one hand services of HPSEBL are getting compromised and on the other hand rates are increasing. “After electricity duty and power tariff hike, increased infrastructure development charge is the third blow on account of power to the industry which brings investment and employment to the state”

“We appeal to state government to review the decision and roll it back to previous rates,” stated Aggarwal.

The officials of the HPSEBL limited, however, called it just and said, “The normative rate of IDC up to 2012 was Rs 2,000 per kva. It was reduced substantially in a huff by the government following representations by a section of the industry and this severally hit infrastructure development works in the industrial areas.”

The board has merely re-introduced the normative rates given the dire need to expand power infrastructure in the industrial clusters like Baddi Barotiwala Nalagarh (BBN) which hosts more than 90 per cent of the state’s industry.

It was worth mentioning that in February, a 100 MVA transformer was damaged at Uparla Nangal, which resulted in power shortage of 30 MW in the Nalagarh area. Since then, a stopgap arrangement was put in place by energising the 30 MVA transformer, which brought temporary relief to the Nalagarh industries. The 100 MVA transformer was also supplying power to the Akkanwali substation which feeds the industries of Baddi. With summer season, power demand has gone up as a result of which the 30 MVA transformer is not able to take additional load.