On June 27, the Associated Chambers of Commerce and Industry of
India (ASSOCHAM) announced that it has urged the Indian government to refund electricity duty on exported goods to offset losses as the duty entitlement passbook (DEPB) scheme is withdrawn.
This reimbursement facility will reduce transactions cost for exporters and enable them to be competitive in the overseas market, ASSOCHAM said.
The scheme can be implemented in the form of a refund to exporters on submission of documentary proof of payment of electricity duty and the applications could be on monthly or quarterly basis.
"Refund of electricity duty corresponding to the amount suffered on final goods exported will be a WTO [World Trade Organization]-compliant scheme and will therefore not fall under any of the actionable subsidies," said ASSOCHAM secretary general D.S. Rawat.
Various state governments in
India have provided exemption from electricity duty for 10 to 15 years as part of their industrial policy to encourage new investments. All export-oriented units and special economic zones are also exempted.