Expensive power and surcharge on value added tax (VAT) are disfavouring the growth of small units in steel industry in Gujarat, said Opposition Leader in the State assembly Shaktisinh Gohil here on Sunday.

“Electricity, costing Rs. 5.75 per unit, is very expensive for industry in the State,” Gohil said, adding, “High cost of power is particularly affecting the small units in the State.”

Addressing a conference organised by the steel industry here, he said the State government has imposed additional surcharge of VAT, which is also adding the manufacturing costs.

These two factors should be addressed urgently by the State government otherwise small and medium industry units will lose out in the competition, Gohil said.

Gohil asked the representatives of the industry to make presentation of their grievances and issues before the State and Central authorities in order to resolve them so that growth can be achieved in the industry.

“You raise your issues affecting the industry. We can also highlight your problems on the floor of the State assembly if required,” he said.

Centre should look into the issues and resolve them so that small and medium scale units can work in competitive environment, he said.

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