Power India found that the State Level Single Window Clearance Authority (SLSWCA) will decide on the issue of electricity duty exemption for Jayashree Chemicals Ltd, the only manufacturer of caustic soda in Odisha.
Burdened by the steep cost of electricity which accounts for 60 per cent of its production cost, the company had sought waiver in electricity duty for a period of 10 years. The hike in power tariff announced recently by power regulator-Odisha Electricity Regulatory Commission (OERC) had nullified the power conservation efforts of the company which was achieved through installation of membrane cell technology.
At a recent meeting held under the chairmanship of Chief Secretary on grant of incentives to Jayashree Chemicals, the state government asked the company to submit a separate proposal, substantiating its plea for the duty waiver. The proposal would then be considered by SLSWCA.
The company said its financial position did not permit it to set up a captive power plant.
The state government, has however, decided to offer exemption on value added tax (VAT) on incremental production of the company. Jayashree Chemicals had ramped up caustic soda production capacity of its plant at Ganjam in south Odisha from 22,500 tonnes per annum (tpa) to 53,200 tpa. The company had also invested Rs 150 crore on switching over to membrane cell technology from mercury cell technology.
The company which is engaged in the manufacture of caustic soda, liquid chlorine, hydrochloric acid and sodium hypo chlorite counts Emami Paper Mills, Ballarpur Industries Ltd, J K Paper, Hindalco Industries and National Thermal Power Corporation (NTPC) as its major clients.
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