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Industries in Aurangabad oppose proposed power tariff hike

Press Trust of India  |  Aurangabad 

Industrial associations in

Aurangabad district have voiced their opposition to the proposed hike of electricity tariffs by state utility Mahadiscom from April 1, saying that the increase in rates would be detrimental to the industry.

Chamber of Marathwada Industries and Agriculture (CMIA) on Thursday raised the concerns before the Maharashtra Electricity Regulatory Commission (MERC) here during a hearing.

It said that although the Mahadiscom claims that the hike would be two to four per cent, its impact in the five- year period would be around 15-20 per cent.

"This will be dangerous for industries in Marathwada region," CMIA member and energy expert Hemant Kapadia said.

The fixed charges will increase by over 63 per cent from the current Rs 391 per unit to Rs 638 till 2025, which is a burden to industries, he said.

"We are struggling for new projects and make current projects sustain. This rise will surely hit the growth of industry in Marathwada," Kapadia added.

According to Kapadia, the tariffs are charged at Rs 7.07 per unit.

"A rise of 10 paisa per unit per year is proposed by Mahadiscom. This will lead to an increase in tariffs to Rs 7.47 in next five years," he said.

Marathwada Industries of Small Scale Industries and Agriculture (MASSIA) and some local companies also objected to the proposed tariff hike.

"New electricity tariff would create problems for new as well as existing companies. The rates in the state are already high for industries, and we have demanded measures in favour of industry by not raising the rates," MASSIA secretary Manish Agrawal said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, February 13 2020. 20:26 IST