It seems the Haryana Government is all set to woo the industrial investors for making investments in the state and has already set the ball rolling for it by offering concession on the power tarriff. The state government has already made the power tariff cheaper for the domestic consumers by providing one rupee concession recently and has now made another announcement to reduce the power tariff for the industrial sector by one rupee per unit to attract the prospective industries.
The cheaper power rates won’t come into affect immediately and are likely to be notified next month. Similar steps were taken by the Punjab government to revive the industries in the state and it appears that the Haryana Government is following the footsteps of the Punjab government to boost business in the state.
What will be the new price for Electricity in Haryana
The large units will get power at Rs 6 per unit whereas after the announcement to slash power tariff for industry by Re 1 per unit, the Micro, Small and Medium enterprises (MSME) will now get power at Rs 4.99 per unit. In the recent concession in domestic power tariff, the state government was able to pass on the benefits after a relief in fuel surcharge adjustment (FSA).
Revival of Industries
There are more than several reasons that have drastically impacted the image of the state in terms of industry and in terms of a safety in the state as well. High power tariffs, sky-high land cost and gradually deteriorating law and order in the state has left the industry in Haryana into an unfavorable position with regard to the industries in other states. Though the state government is commencing several initiatives to rectify these issues but is emphasizing more on “pro-industry” initiatives.
Major power utilisers
Both the states, Haryana as well as Punjab, rely majorly on thermal power. Besides offering numerous benefits to support the farmers in the state both the governments are offering substantial subsidy on power tariff to the agriculture sector. A flat rate of 12 paise per unit is being charged for electricity consumption from the farmers in Haryana and most of this subsidized electricity is utilized in tube wells for crop irrigation. Surprising though, this consumption of subsidized power in the agri-sector is more than other major categories including the domestic consumers and other industries.
Source Times of India
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