Shimla, Aug 27,
The Himachal Pradesh Steel Industries Association has raised concerns over the state government’s decision to withdraw the subsidy on electricity charges, warning that this could lead to the mass migration of industries to neighboring states.
Association General Secretary, Rajiv Singla, in a media communique stated that the significant increase in electricity charges, effective from April 1, 2024, marks the highest in the state’s history, with a hike of Rs 1 per unit for most consumers.
Himachal Pradesh, once known for its power surplus status, has seen electricity costs soar, making it more expensive than neighboring states like Punjab, Haryana, and Uttarakhand.
The state government had initially committed to subsidizing this increase for the fiscal year 2024-25. However, recent reports suggest a withdrawal of the subsidy for hotels and commercial establishments, with a decision on industrial consumers expected on September 2, 2024.
Industries in Himachal are already grappling with high taxes, transportation costs due to cartelization, and expensive manpower. The withdrawal of the power subsidy would further strain their operations, making them uncompetitive and potentially accelerating their migration to other states offering better incentives.
The association emphasized that industries in Himachal Pradesh directly employ over 7 lakh people, support more than 30,000 local transport vehicles, and consume 60% of the state’s power.
They urged the state government to reconsider the decision to ensure the sustainability of industrial activities and maintain the state’s economic stability.
As industries consider relocating, the potential economic fallout could be severe, impacting employment and revenue generation in the state.
The association’s appeal evidently underscores the need for government intervention to prevent an industrial exodus from Himachal Pradesh.
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