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Govt plans to reduce the burden of electricity cost
In the wake of widespread opposition to the recent increase in electricity rates on the pretext of adjusting fuel costs, the government is starting to think about reducing the load, and it is likely to get a clear picture soon.
Bengaluru: In the wake of widespread opposition to the recent increase in electricity rates on the pretext of adjusting fuel costs, the government is starting to think about reducing the load, and it is likely to get a clear picture soon.
Electricity rates were increased twice in seven months. As Rs 0.43 paise per unit has been raised under BESCOM for adjustment of fuel cost. Rates were revised in other Escoms. This has been strongly opposed by the public as well as the industry.
At present, the electricity tax is 9%, and from this source, the government gets about Rs 2,823 crore annually income. There has been discussion about reducing it to 6-7 percent. Apart from attracting the industrial sector, this move can also attract businesses away from Escoms. This will increase productivity and will indirectly return to the government in the form of GST. Sources in the Energy Department said that it was thought that the revenue loss due to tax reduction could be compensated by this.
Election compulsion?
Assembly and BBMP elections are going to be held in the state soon, and the rate hike is likely to become a weapon for the opposition. Therefore, it is said that the strategy of reducing the tax burden and giving revenge to the opposition is also behind this.
A plan has been drawn up to attract industries through the Global Investors Summit in November. Officials of the Energy Department say that there is a calculation to portray it as "industry friendly" by reducing electricity rates through alternative routes.
There are 5.35 lakh LT and 15,147 HT industries in the state. These customers are consuming 2,022 mU and 8,037 mU respectively. In the last 3 years, industries are moving towards free power purchase due to the attitude of Eskoms.
In the meantime, the increase in electricity rates will again affect the investment. Therefore, Federation of Karnataka Chamber of Commerce and Industry (FKCCI) president BV Gopala Reddy demands that the rate of electricity tax should be reduced to 4 percent. If the fuel tax rate is reduced, the burden will not fall on the government. Instead, he said, the income will increase indirectly.
