Cement, fertilizer companies disappointed over electricity duty

JAIPUR: The companies in cement and fertilizer sectors expressed deep disappointment over the state government’s proposal to levy electricity duty on captive power generation and said the move will have a significant impact on their balance sheets.

Chief minister Vasundhara Raje proposed in the budget presented on Monday that captive power plants other than diesel generators will attract electricity duty of Rs 40 paise per unit. There was no duty earlier.

Captive power plants are put up by companies to meet their own requirement and reduce dependence on state utilities whose reliability is always not guaranteed. There are many states in the country where captive power generation doesn’t attract any duty.

“The budget document is silent on whether the government has included all sources energy such as thermal, solar, wind and bio-mass for the levy of electricity duty. We will seek clarity from the concerned department. But the duty will require companies to shell out crores of rupees depending on the capacity generation,” said Ramakant Sharma, director of a leading cement company having operations in the state.

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