Western India: Gujarat Govt Waives Off Fixed Electricity Charges for Industries

Gujarat government has announced exemption of fixed demand charges on electricity bills for industrialists for the month of Apr'20, SteelMint's reliable sources reported. Industries will only be charged for their actual electricity usage.

The state government has also extended monthly electricity bill payment to 15th May'20, where all industries will be benefited.

This step was taken in view of the current situation to relieve financial burden as transactions have been disturbed due to complete lockdown in the country.

Considering the request of Sihor Rolling Mills Association and Bhavnagar Induction Furnace Association, Gujarat government has relieved the industrialists over fixed electricity charges and bill payment due date.

Talking about the industries' electricity usage and daily production, about 90-100 Induction Furnaces are operational in Gujarat with a production capacity of about 13,000-14,000 MT (Ingot/Billet) per day. Few medium sized furnaces are also there, commonly have 10 MT & 12 MT IF, particularly in Bhavnagar, where 4,000 KV fixed demand amount would be around INR 5-5.5 Lacs and 2800 KV would charge around 3-3.5 Lacs.

Monthly electricity reading is made on 15th of every month, generated by 17-18th and payment due date is till 27-28th of the month.

Few industrialists expect, the exemption of minimum charges might further extend to May'20.