Associations plead CM to defer proposed power tariff hike

Seven industrial associations in the region today requested Tamil Nadu Chief Minister, Jayalalithaa to defer the proposed hike in power tariff effective from April one, 2015, as it would provide industries sufficient time to adjust their prices and mode of operations.
Most of the industries, particularly MSMEs, have not picked up their business for various reasons and the proposal to go for a steep increase in the tariff would make them highly uncompetitive with their counter parts in other states, which are offering various sops to industries.
In a letter to Jayalalithaa, a copy of which was released to the press, the associations said the proposed hike will result in an increase in the average billing rate by Rs two per KWHR (unit), which is more than 30 per cent to industries.

Most of the industrial consumers have long term price contracts with customers for the whole of the financial year and in turn, many of their customers would have committed to fixed prices to their customers and contracts, they said.
It is very difficult, if not impossible, to revise these prices to take care of increase in cost of electricity during the course of the current financial year.
The exporters, in particular, would be hut deeply, the letter said Tamil Nadu Electricity Consumers Association, Indian Chamber of Commerce and Industry, Southern India Mills Association, CII, Coimbatore Zone, Coimbatore District small Industries Association, South India Engineering and Manufacturers Association and Institute of Indian Foundrymen, Coimbatore are the signatories.