By 121 News
Chandigarh 02nd July:- Confederation of Indian Industry (CII) Punjab State Council has expressed shock and displeasure over the imposition of Infrastructure Development Cess (IDC) of 5% on power being consumed by all segments of society, excluding those exempted from paying electricity duty, which has been notified today. CII would request the Government to reconsider its decision for the sake of industry which is already reeling under huge pressure of transportation and input costs.
S S Bhogal, Chairman, CII Punjab State Council commented that this sudden decision to impose additional 5% Infrastructure Development Cess has come as a rude shock for the Industry. The burden of power tariff enhancements in the past had already become unbearable for the Industry, and coupled with its landlocked nature which leads to high transportation costs due to large distance from ports. This decision to impose additional 5% cess would further add to the input costs and negate the very efforts of the state government to promote the state as an industrial destination.
D L Sharma, Convenor, CII Punjab Policy & Advocacy Panel & Director, Vardhman Textiles Limited stated that as it is, Punjab is among one of the costliest states in terms of power for industry and the primary reason is due to free power supply to agriculture sector, the cross subsidy burden on the industry has been growing consistently in the last couple of years, which is quite contrary to the advisory by CERC which has been calling upon states' electricity bodies to gradually phase out cross subsidies.
Pikender Pal Singh, Regional Director, CII Northern Region, stated that CII understands the importance of development of infrastructure in every aspect to the state, however we also feel that the policy to sustain development of infrastructure at the expense of industrial sector will not be sustainable in the long run.
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