In a bid to assist the state’s industries in becoming competitive, the Rajasthan government has committed itself to facilitate ‘ease of doing business’. The state government has initiated a single-window system in which officials from 14 departments are providing permissions in 100 different areas related to industries. MSMEs can seek for related permissions through this online portal without having to physically visit different offices.
During 2019-2020, RIICO received investments of Rs 1400 crores from the e-auction of industrial plots
While addressing a virtual seminar on the theme of ‘Challenges in Sourcing Cheaper Electricity for Industries’ the state’s industry minister mentioned that during 2019-2020, RIICO received investments of Rs 1400 crores from the e-auction of industrial plots. This webinar was organised by FICCI Rajasthan State Council, in association with Indian Energy Exchange Limited.
The Managing Director of Rajasthan Urja Vikas Nigam Ltd, stated that electricity expenses are a major input in the overall cost of industries. Electricity cost in Rajasthan is higher as compared to other states due to the financial position of the electricity distribution company which is linked to the consumer mix of the state. The MD added that the department will be looking into areas like access to rebates, making timely payments to the generators, operational efficiency of thermal plants and so on, to reduce the overall procurement cost.
Industries can avail of several power procurement choices; Power Exchange option termed as ‘highly liquid’
The Head-Business Development & SVP of Indian Energy Exchange said that high Cross Subsidy Surcharge, 24-hour scheduling restriction, uniform scheduling for at least 8 hours, minimum 1 MW contract demand for availing open access, among others are key issues for open access in Rajasthan. He further added that industries can avail of power procurement options, like long-term for more than 7 years, medium-term ranging from 1-5 years, short-term for up to 1 year. The most preferred option is, however, the Power Exchange option which is a highly liquid and transparent marketplace.
As per the statement of a top official related to Deloitte, open access is an option to purchase cheaper electricity. It allows the consumer to purchase electricity directly from power generators, traders or exchange. In Rajasthan, open access will have a positive impact on additional job opportunities and state wise share in incremental GDP.
The official also mentioned that there is a need to initiate discussions between the Department, Rajasthan Electricity Regulatory Commission (RERC) and Power Discoms on how open access can be effectively resolved. Furthermore, there is also a need to establish a road map for implementing provisions related to Open Access under the Rajasthan Industrial Development policy 2019, he added.
Earlier, delivering the welcome remarks, the Chairman of FICCI Rajasthan State Council & CMD of Kajaria Ceramics Ltd, concluded that as industrial activities have resumed after an extensive lockdown, there is a need to fight slow progress and attract new investments to the state.
