The Gujarat government has incurred a loss of as much as ₹2703 cr by waiving off electricity charges for the state’s industries.

The amount waived off by the government has also seen at least a ₹100 cr spike year over year.

Heavy waiver losses increase every year

On Sept 16, the Gujarat government released a statement in the state assembly, projecting a whopping ₹2703 cr of electricity charges waived off for private industrial units in the last three years.

As per the data, the waiver offered by the government to industrial units in the state was divided as ₹782.26 cr in 2020-21, ₹921.71 cr in 2021-22, and ₹1,000 cr in 2022-23.

This indicates that the state has incurred such hefty losses with a ₹100 cr year-on-year surge.

22,142 industries in Gujarat’s top cities received waive-offs

Industries across all the districts of Gujarat have received this waiver.

Among the ceded electricity charges of all the industries in Gujarat, 1,626 industries were in Ahmedabad, whose ₹149 cr were waived off; other than that, ₹275 cr of Surat’s 13,082 industries, ₹896 cr of Morbi’s 3,707 industries, ₹267 cr of Bharuch’s 782 units, and ₹209 cr of Rajkot’s 2,945 industries were also waived off.

Electricity charges from a total of 22,142 industries were ceded during this three-year tenure.

Government defends their move

The government has argued that it has granted the waivers under the provisions of the Gujarat Electricity Duty Act, which provides a levy of a duty on the consumption of electrical energy in the state, and the Gujarat Special Economic Zone (SEZ) Act.

However, the opposition is alleging the state government’s leniency towards industrialists and corporations in this matter.

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