The Maharashtra metal trade has urged the state authorities to renew energy subsidies for enterprises and supply the next budgetary allocation of Rs 1,800 crore for this to help industries in backward areas equivalent to Marathwada and Vidarbha.
Metal Producers Affiliation of Maharashtra President Yogesh Mandhani mentioned that the per-unit price of electrical energy had come down to five from 8 earlier because of the subsidy supplied by the federal government.
To spice up trade in backward areas within the state, the state authorities had launched a subsidy on energy tariff for industries in Marathwada, Vidarbha and Khandesh areas consistent with the suggestions of the Vijay Kelkar committee.
Initially, no caping was finished however later, the federal government budgeted this subsidy to 1,200 crore a 12 months. The federal government had allotted Rs 1,200 crore for paying subsidy through Maharashtra State Electrical energy Distribution Co Ltd (MSEDCL) however the quantity was exhausted in December 2020. On account of this, industries are actually paying the ability invoice on the full fee.
The metal trade, amongst all others, used to get subsidies within the vary of 5-7 per cent on electrical energy invoice based mostly on their efficiency however now, all these industries are paying extra price per unit.
The problem was raised by MLA Kailash Gorantyal, who demanded that the federal government ought to enhance the annual subsidy from Rs 1,200 crore to Rs 1,800 crore from this present monetary 12 months itself.
Mandhani mentioned he has additionally submitted a memorandum to Power Minister Nitin Raut on this regard.
“We’ve got demanded to take away the imbalances of the trade within the state by allocating subsidy,” he mentioned.
He additionally added that because of the highest tariff, the state’s corporations couldn’t compete with the neighbouring states like Chhattisgarh, Gujarat and Madhya Pradesh, that are having decrease tariffs and different useful incentives.
“We request the federal government to offer a budgetary allocation of Rs 2,500 crore annual to incentives industries, as many extra industries are prone to come as a consequence of this subsidy,” Gorantyal.
He added that the metal trade is already dealing with a disaster as a consequence of excessive price and stiff competitors, and the discontinuation of subsidy has added to their issues.
In Jalna, 50 small and medium enterprises are working that present employment.
Industrialist Satish Agarwal expressed due to Gorantyal for elevating the difficulty.