By Bizodisha Bureau, Bhubaneswar, June 20, 2017 : Leading industries including Tata Steel, Vedanta, Jindal Steel and Power Ltd, HINDALCO, Paradip Phosphates Ltd, IMFA, Nava Bharat, FACOR, MAITHAN to state owned NALCO have come together to seek a roll back of Odisha’s 83% hike in duty on electricity from their captive power plants.

In May, the state government announced to hike electricity duty from Captive Power Plants from Rs 0.30 a unit to Rs 0.55 shocking the industry.

“The steep hike of electricity duty from Rs.0.30/kwh to Rs.0.55/kwh will make the cost of production in the state increase by Rs.4,000/- per tonne in case of aluminium metal to Rs.400 per tonne in case of steel and will make the industries in Odisha un-competitive severely eroding the competitiveness of products produced in Odisha as compared to that of the other neighbouring states and overseas”, according to a statement following a consultative meeting chaired by Nalco CMD, TK Kumar Chand.

Representatives of virtually all companies with a captive power plant in the state, the CII, confederation of power producers and Aluminium Association of India attended the meeting.

The meeting decried the steep hike at a time when domestic as well as international market is going through sluggish cycle. They also described the hike as inappropriate and uncalled.

Incidentally, the Captive Power Plant Federation has already moved to the Court and has obtained an interim order to keep the differential increased amount in a separate account till the disposal of the case.

“The government should not push the industries to a corner where they have no other option but to seek court intervention for relief,” it added. This hike they claim comes was uncalled for and comes at a time when domestic, and international markets are going through sluggish cycle. “Many CPPs are running only at about 30 ­ 40% capacity, and the hike will make them unviable.