As seen on the internet – “Cold storages demand incentives and reduction in power duties”

NEWS & MEDIA | 30 July 2019

As seen on the internet – “Cold storages demand incentives and reduction in power duties”

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An article from the Gujarat Times is attached. Seems the Gujarat cold stores are putting pressure on their state government to reduce electricity ‘duties’ as they argue cold stores form a critical part of the supply chain. The article suggests that while cold stores are now classed as an “industry” the state is still charging previous more onerous duties. In South Africa, a cold store lobby group should be able to get an exemption from upcoming carbon taxes on the same basis. As most now have their own generators, South African cold stores could lobby for special rates to run them when the South African grid is under pressure.  There is also the possibility of obtaining special feed in rates for electricity produced via PV panels and or subsidies for such installations.  Some potential benefits for working together?

 

“Industry representatives have urged the state government to reduce electricity duty on cold storages. They claim that cold storages form a critical part of the entire supply chain in the food sector and is a crucial link between the producer and the consumer; therefore, the government should give incentives and reduce duties.

In a recent letter to the petroleum and energy department of the state government, the Gujarat Chamber of Commerce and Industry (GCCI) drew the department’s attention to the fact that the government has classified the logistics sector as an industry. The rate of electricity duty on industries is 15%, while that on cold storages is 20% for low-tension connections and 25% for high-tension connections.”

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