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CII concern over power tariff hike for industry

Posted on Jan 08, 12:16PM | UNI

The Confederation of Indian Industry (CII)-Andhra Pradesh unit Chairperson Suchitra K Ella today expressed concern over the proposed power tariff hike for electricity consumers in general and industry in particular.

'The proposed hike is expected to have a burden of Rs 607 crore for small scale industry and Rs 4,728 crore for large scale industry, annually', she said.

The power tariff hike for industries would lead to increase in the cost of production.

Thus it will make industries in Andhra Pradesh less competitive compared to other states, Ms Suchitra said.

She said the Government justified the power tariff hike by citing the increasing power revenue deficit.

However, instead of hiking the power tariff rates, the state Government could have reduced the power subsidies and resorted to better expenditure management methods.

The proposed tariff hike comes at a time when the industry is already facing several hardships such as imposition of Fuel Surcharge Adjustment (FSA) and impact of global slowdown, she said.

The industry is unable to meet the minimum production demands due to frequent power cuts and two-three days power holiday for industries, Ms Suchitra opined and said as the industry is already reeling under severe power shortage, the hike in demand charges will lead to greater burden for the industry.

In order to meet the increasing power requirement for the Industry, CII is also partnering Government of Andhra Pradesh on Energy Conservation measures for accelerating energy efficiency, the CII Chairperson said in a statement.