Budget 2025: Digital Infrastructure Providers Urge Reforms in Power Tariffs
CIOTechOutlook Team | Thursday, 23 January 2025, 05:20 IST
Digital infrastructure providers have strongly advocated for reforms in power tariffs and tax structures, stating that the telecom sector encounters "several critical challenges" that demand urgent focus in the budget 2025.The Digital Infrastructure Providers Association (DIPA) is advocating for the adoption of industrial electricity rates for telecom infrastructure throughout all states and union territories, mirroring the progressive approach already implemented by Maharashtra, Himachal Pradesh, and Haryana.
"Even though the telecom industry has been acknowledged for more than 20 years, the difference in electricity rates continues to persist, imposing an extra operational cost of around Rs 5,000 crore each year on infrastructure providers," stated Manoj Kumar Singh, Director General of DIPA.
The dependability of power infrastructure is essential for uninterrupted digital connectivity. The organization is advocating for the establishment of a 24/7 power supply to telecom locations and faster processing of new electricity connections, as required by the Electricity Rights of Consumers Rules, 2020. It holds that the incorporation of smart and prepaid electricity meters within the Revamped Distribution Sector Scheme (RDSS) would greatly improve operational efficiency.
DIPA aimed for the countrywide application of composite billing schemes to enhance operations and boost billing process efficiency. The industry organization has also suggested various initiatives, which it claims would bolster and reinforce digital infrastructure. Initially, it proposed that categorizing telecom towers as 'plant and machinery' would facilitate improved tax advantages.
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