In a surprising turn of events, the Himachal Pradesh state government has implemented a substantial increase in electricity rates for industrial units. Previously set at Rs 4.20 per unit, the new rate stands at Rs 5.06, translating to an 86 paise per unit hike. Concurrently, the electricity duty for industrial units has leapt from 11% to a staggering 19%. This move comes as a stark contradiction to assurances provided by Industries Minister Harsh Vardhan Chauhan just three months ago during a meeting with entrepreneurs in Kala Amb. At that time, the minister had unequivocally assured the industrial community that there would be no upward revision in the electricity duty.
Despite these assurances, the recent surge in electricity duty has sent shockwaves through the industrial landscape of Himachal Pradesh, with businesses now grappling with the financial repercussions of a nearly 73% increase from the previous rate. This abrupt policy shift has left industrialists questioning the government’s commitment to providing a conducive environment for business operations.
The sharp increase in electricity duty directly impacts the operational costs of industries, threatening their competitiveness and overall economic viability. Small-scale enterprises, in particular, find themselves disproportionately affected, raising concerns about the potential consequences for local employment and industrial growth.
Critics argue that the state government’s focus on revenue generation through elevated duty rates without a parallel commitment to ensuring a reliable and stable electricity supply is shortsighted. Industrialists stress the need for a more balanced approach, where policies not only enhance revenue but also foster an environment that supports sustainable industrial growth.
