Several Indian LED manufacturers have asked the country’s government to consider implementing tax reforms to make it easier for companies to conduct business across different India states, reported The Hindu.

The different tax systems implemented by Indian States was making it difficult to conduct business, said LED manufacturers at a conference organized by India’s Energy Efficiency Services under the Union Power Ministry.

For instance, in the Andhra Pradesh state the VAT structure can range from 5% to 14.5%, this makes it very hard for manufacturers when delivering supplies for large scale State projects, where there are high tax rates and the plant is in another State.

Indian LED lighting associations Elcoma and Ledma demanded for a uniform tax regime among different states, which would allow manufacturers to function with more predictability.

LED manufacturers request Andhra Pradesh state to extend LED supply deadline

In addition, the talks were centered around Andhra Pradesh’s procurement demands for LED lights to replace incandescent lighting systems, and the State’s demands impact on the demand-supply situation for outdoor LED lights.

Representatives from Philips, Surya Roshini, Avni and others noted it would be difficult to meet the State’s purchase demands in a short period of three months.

Philips Lighting India has a manufacturing capacity of about 1.5 million streetlights, but if one state demands 570,000 streetlights it would be equivalent to about four months of the country’s production, said the company CEO Harsh Chital. Andhra Pradesh’s market demand distorts the market supply situation.

Andhra Pradesh has requested manufacturers to supply 570,000 LED streetlights within three months. LED manufacturers have asked for an extension to procure the required materials to meet large scale production and time for proper installation. They pointed that if the lighting upgrade was implemented in a rush, it could be damaging in the long run.