Rajasthan Industries Voice Concerns Ahead of State Budget 2026–27
As the Rajasthan government prepares its Budget for the fiscal year 2026–27, industry associations across the state have raised urgent concerns regarding escalating operational costs and policy inconsistencies that they claim are stifling industrial expansion. Representing a broad spectrum of sectors including manufacturing, MSMEs, textiles, tourism, IT/ITeS, and renewable energy, these groups have called for immediate governmental intervention to foster a more conducive business environment.
Power Tariff Hikes and Regulatory Charges Under Fire
One of the primary grievances highlighted by industry bodies revolves around recent increases in power tariffs. Discoms have raised fixed charges from Rs 300 to Rs 380 per unit, alongside the imposition of a regulatory charge of Rs 1 per unit and additional fuel surcharges. Industry representatives warn that these adjustments could elevate power costs by as much as Rs 15 per unit for certain cogeneration-based industries, significantly impacting their bottom lines.
The withdrawal of the load-factor rebate has further exacerbated the situation, making it increasingly challenging for businesses to manage energy expenses. These cost escalations come at a time when industries are already grappling with inflationary pressures and competitive market dynamics.
Arbitrary Urban Development Charges Spark Outcry
In addition to power-related issues, industry associations have strongly opposed notices from municipal corporations demanding urban development charges (UDC) in RIICO industrial areas. They argue that these charges are arbitrary, given that civic services are already provided by RIICO against annual service charges.
The UDC was initially withdrawn in 2010 and reiterated as such in 2013, yet its reintroduction through the misclassification of industrial units as commercial establishments has drawn sharp criticism. This move, according to industry leaders, not only adds an unnecessary financial burden but also creates regulatory confusion that hampers long-term planning and investment.
Key Demands from Industry Leaders
Suresh Agarwal, President of the Federation of Rajasthan Trade and Industry (FORTI), outlined several critical demands during discussions with the media. He emphasized the need for the government to recognize ancillary services as core industrial activities. "We urge the government to classify logistics, warehousing, weighbridges, banking, and courier services as integral components of industrial operations. Existing warehousing units, in particular, should be officially designated as industrial activities to ensure they receive appropriate policy support and incentives."
Safety Concerns Over BPCL LPG Bottling Plants
Agarwal also raised significant safety concerns regarding BPCL LPG bottling plants located in densely populated industrial and residential zones. He called for their relocation to safer areas to mitigate potential risks. "Any accident at these facilities could have catastrophic consequences for the Vishwakarma Industrial Area and neighbouring colonies such as Vidhyadhar Nagar, Murlipura, and Shastri Nagar. The financial losses could exceed Rs 100 crore, and thousands of lives would be endangered," he cautioned, underscoring the urgency of addressing this issue.
Comprehensive Recommendations for Industrial Revival
The industry associations have presented a holistic set of recommendations to the government, aimed at revitalizing the state's industrial sector. These include:
- Tax incentives specifically tailored for MSMEs to enhance their competitiveness.
- Improved access to credit facilities to ease capital constraints.
- Sector-specific capital support to foster innovation and expansion.
- Accelerated investment in logistics and industrial infrastructure to reduce operational bottlenecks.
Furthermore, they highlighted the importance of skill development partnerships and enhanced digital governance as pivotal elements in improving the ease of doing business. By streamlining administrative processes and fostering a skilled workforce, Rajasthan can attract more investments and stimulate sustainable industrial growth.
As the state government finalizes its budgetary allocations, the industry's plea for a supportive policy framework and cost-relief measures remains a critical agenda. Addressing these concerns could pave the way for a more robust and resilient industrial landscape in Rajasthan, driving economic prosperity and job creation across the region.
