MSME, powerloom units oppose proposed power tariff hike in TN

CHENNAI: The MSME units and the powerloom units in Tamil Nadu have strongly objected to the proposed power tariff hike.

Tamil Nadu Electricity Regulatory Commission (TNERC) has already requested the public to vent their opinion regarding the proposal submitted by the Tamil Nadu Generation and Distribution Company (Tangedco).

R. Balakrishnan, a leader of the MSME association in Chennai said, “It is to be noted that earlier the fixed charges Low Tension (LT) power tariff was Rs 35 per unit for a month. Presently, it is split into three categories. It is now proposed at Rs 100 (per month) for 0 to 50 units, Rs 325 per month for 50 to 100 units, and Rs 600 per month for above 100 units. This is an astronomical hike and we cannot survive.”

The MSME leader also came down heavily against the proposal of the government to hike power tariffs by 6 per cent every five years and said that the move was irrational. He said that while there was no hike in power tariff for the past eight years, the hike has to be done systematically and in steps and not in a single shot as is being proposed presently.

In a related development, the powerloom owners in Tirupur and Coimbatore have also come out strongly against the proposed hike in the charges.

Secretary of Powerloom association, R Veluswamy said, “We are suffering from yarn price increase and now the proposed power tariff hike will add to our woes. As we came to know that the proposed power tariff hike will be Rs 7 per unit for a power loom and it is way higher from the earlier charge of Rs 4.60 per unit. The demand charge will also go up from Rs 70 a month to Rs 200 a month.”

He said there will be a direct increase of 32 per cent in power bills due to these proposed reforms and added that the association is petitioning the government for a cut in power tariff and will appeal to the TNERC.