Hike in power tariff draws flak from industrial bodies

Various industrial bodies here, including textile, plantation and manufacturing sectors, today condemned the latest power tariff hike in the state.
The move has come as yet another blow to the industries and an additional burden on the small industries, they said.
The increase in HT energy charges from Rs 5.50 to Rs 6.35 per unit, coupled with the increase in monthly demand charges per KVA from Rs 300 to 350 is expected to contribute to a corresponding increase of Rs 1.25 to the cost of production of a kilogram of made tea, V Suresh Menon, Chairman, Planters Association of Tamil Nadu, said.

Average prices fetched by producers for tea sold at public auctions were already below the cost of production, involving losses on an average at not less than Rs four per kg of tea, he said, adding the increase would only further aggravate the under-recovery of cost being suffered by tea producers.
Meanwhile, Southern India Mills' Association (SIMA) said the increase would seriously affect the competitiveness of textile industry in Tamil Nadu across the value chain.
SIMA has appealed to the government to exempt textile industry so as to sustain the viability of the state and also enable the state to attract further investments, T Rajkumar, Chairman of the Association, said in a statement here.

D Balasundaram, President, Tamil Nadu Electricity Consumers Association alleged that the increase in tariff showed the inefficiency of TANGEDCO, as there was 26 per cent wastage of power. There was no necessity for a hike if this loss was plugged, he told reporters along with office bearers of 24 industrial bodies.

K Ilango, Chairman, local chapter of CII, said by hiking the power tariff it was not feasible for the industry to compete with China and adopt the Prime Minister's 'Make in India' policy.
"With this cost, we have to rely on imports," he said.
"It will be an additional burden on small industries," E K Ponnysamy, president, Coimbatore Small Industries Association, said.