The Federation of Andhra Pradesh Industries has sought waiver of 33 per cent VAT on diesel used by the industry in captive power generation, as the State is facing “an unprecedented power crisis and the industry is desperately struggling for survival.”

At a press meet here on Thursday, FAPI President, B.V Rama Rao, said the State Government's lack of vision had led to the present crisis.

There was too much dependence on hydel power and the other sources - both conventional and non-conventional - were not tapped.

Other States such as Tamil Nadu were exploiting wind power and solar power, but Andhra Pradesh was badly lagging behind, he said.

In the circumstances, the State Government should provide 25 per cent subsidy on purchase of diesel sets for captive power generation for the industry, he said.

Generation duty should be removed and demand charges of Rs 250 per kV should also be dispensed with, when there is no power supply to the industry.

The State Government should immediately concede these demands and provide relief to the units.

Rama Rao said industrial production in the State had fallen by more than 50 per cent and the small-scale, medium-scale and tiny units in particular were facing great hardship. They would sink, unless the State Government rescued them.

He said a State-level convention would be held in Hyderabad on August 8 at Hotel Taj Krishna to discuss the power crisis and suggest remedies to the Government. It would be held from 2.30 p.m.

(This article was published on August 2, 2012)
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