Pb industry minister wants cheap power for existing industry

With Punjab government facing flak over offering cheap power to new investors, state Industry Minister Madan Mohan Mittal today came out in support of existing industry which is seeking energy at cheaper rate on the lines of new industrial units.
Representatives of industry from Punjab during an interaction with Union Minister of State for Finance Jayant Sinha today sharply condemned the SAD-BJP led Punjab government for not giving power at cheaper rate to existing industry, saying power to new units will render them uncompetitive.
Seeking to present state as best investment destination, Punjab Cabinet last month had announced a slew of incentives including cheap power at Rs 4.99 per unit for five years to new industrial units.

"You have offered cheaper power to new industrial units but what about existing industry. This is the most unfair (move on the part of government)," Ludhiana-based shawl industry representative Mridula Jain said during an interaction programme held here.
Her criticism of the state government's move of cheaper power to new units drew applause from industry representatives sitting in the programme which was also attended by industry minister Madan Mohan Mittal.
Another industrialist from Mandi Gobindgarh Mohinder Gupta said that the secondary steel industry would be finished if incentive of cheap power was not extended to existing units.

"We are charged Rs 7.73 per unit for power while new units will get power at Rs 5 per unit. We will be finished with this move," Gupta said.

In his reply, Mittal said, "I am saying that existing industry should get power at fixed rate like new units will get. We are fighting for it. Power to existing industry at fixed rate should be given for 5 years."
Existing industry be it iron and steel, bicycle makers, auto parts makers had contended that the viability of the old units will be adversely hit as cheap power will render them uncompetitive.
Punjab Deputy Chief Minister Sukhbir Singh Badal last month had said that the state government would roll out a special package for existing industry by November after existing industry condemned the move of state government to offer cheap power to new investors.