Himachal Pardesh Steel and Alloys manufacturer association has expressed concern over the hike in power tariffs in the state. In a demand charter to industry minister during his visit to Kalaamb last evening association said that power tariffs were increased to tune of 50 paisa per unit from 1st April which had created additional burden on steel manufacturers and also informed minister that excise duty on power was also enhanced.

Mr Megh Raj Garg said that earlier it was 33 paisa per unit but now the same has been increased to 51 paisa per unit. He demanded to withdrawn the hike in power and additional excise duty from the power.

Describing other problems he said that the manufacturers of steels were paying VAT on raw material and finished goods but now additional goods tax @75 per tonne on raw material as well on finished goods was imposed which should be withdrawn to safeguard the industries.

Mr Garg told that the state has levied entry tax on diesel and furnace oil @7% of the value with effect from May 7th 2010 but such tax was not levied by any other state in the country.

Association also expressed disquiet over the ignorance in purchase and price preference being Himachal units. In the demand charter to Industry Minister Association said that other states were giving preference to their units. Association also says although purchase and price preference clause was very much their in industrial policy of the state but the same was not being implemented so far.

HP steel and Alloys manufacturer association also informed Industry Minister that there was conflict between two departments over declaring Kalaamb Trilokur road as a hilly road.

Mr Megh Raj Garg of the association said that if the area was being declared as a hilly than Industries could get more transport subsidy as it was more in hilly area as compare to plain terrain.

(Source: Steel Guru)