Continue power sops for industries: VIA
   Date :03-Jun-2021

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Business Bureau :
VIA strongly recommends the Government to immediately set up a committee and make amendmends in this policy within month of June so that continuity can be provided
The State-Government has given a shock to the industries of Vidarbha, Marathwada and Khandesh regions of Maharashtra by putting on hold the ‘Efficiency Based Energy Incentive Scheme for Backward Region’ after the month of May 2021 so as to be implemented again only after new policy is in place. R B Goenka, Vice-President of VIA said, “The State Government should continue with the power concessions till a new policy is formulated. In this regard, VIA will work with the Government and give vital inputs and suggestions in the restructuring process in the policy so that the concession lasts for the entire year and does not get exhausted midway.”
At the same time, VIA has objected the decision of the State Government and demanded continuation of power relief to industries. VIA strongly recommends the Government to immediately set up a committee and make amendments in this policy within the month of June itself, so that continuity can be provided to this very important scheme in a structure in which beneficiaries can be properly targeted. Apart from this, Goenka said that the MSEDCL has also given additional concession of about Rs 300 crore to Rs 400 crore for new units and additional consumption at 0.75 paise per unit. How can the MSEDCL give this concession if the funds have not been released by the State Government, he wondered while talking to The Hitavada.
Opposing the move, Prashant Mohota, Chairman of VIA Energy Forum said, “The State Government should not stall the scheme midway, even temporarily as it would put the industries at disadvantage as they will not be able to take benefit of the power incentives till a new policy framework is in place.” He said that the proposal will break the confidence of new investors when already the scheme has been extended and promised till March 2024. The power concession scheme had been introduced with a fund of Rs 1,200 crore for three years for industries in backward regions of Maharashtra in 2016. In the year 2019, the scheme was extended till 2024. Industries are getting concession of Rs 1.80 per unit, under the scheme. It is important to note that VIA itself had earlier demanded for need of changes in the Efficiency Based Energy Incentive Scheme for Backward Region considering that the scheme budget is not lasting for whole year and hence units get devoid of this very important benefit for many months every year. Also few big consumers garner major chunk of the benefit due to which the share of the micro small and medium enterprises (MSMEs) gets shrunk.