Pradesh Government Prepares to Reduce Electricity Tariffs for Industries

The Himachal Pradesh government is preparing to reduce electricity tariffs for industries in the state. The Energy Department has started the process of preparing a proposal for cabinet approval. Electricity duties on industries in the state were increased by six to seven percent earlier.

During the monsoon session of the state assembly, BJP legislators protested against this hike. During this time, the Industry Minister assured a reconsideration of the decision. Now, orders have been issued to the Energy Department to prepare a proposal for cabinet approval.

In August, the proposal was approved by the state cabinet through circulation. From September 1, new electricity rates have been implemented in the state. However, tariffs for domestic, agricultural, and irrigation consumers have not been increased.

Under the new rates, electricity tariffs for industries coming under HT (High Tension) have been increased from 11 percent to 19 percent. For EHT (Extra High Tension) industries, the rates have been raised from 13 percent to 19 percent. Small and medium-scale industries have seen their electricity tariffs increase from 11 percent to 17 percent. Cement plants now face a 25 percent increase in electricity tariffs. Diesel generator (DG) sets have also had a charge of 45 paise per unit for electricity generation imposed.

The government has also withdrawn the concessions given in electricity tariffs for captive production and green energy. This proposal was not presented in the cabinet meeting held on August 24. Subsequently, the government has now sent the proposal to all ministers for reconsideration. Various industry organizations have been protesting against the government’s decision. In light of these ongoing protests, the government has decided to reevaluate the proposal.