The industries and the chamber of commerce have heaved a sigh of relief that the power tariff hike is nominal though it will add to the production cost.
The Karnataka Electricity Regulatory Commission (KERC) on Monday hiked the power tariff from 15 paise to 20 paise per unit for industrial consumers.
The Mysore Industries Association (MIA) had sought different slabs for various categories of consumers. It wanted a separate tariff slab for micro and small scale industries.
MIA president P. Vishwanath and general secretary Suresh Kumar Jain said though the KERC has not introduced a differential slab the hike is nominal (15 paise per unit) for small scale industries (SSIs).
“In the past, tariff hike used to be steep, ranging from 30 paise to 40 paise, but this is bearable though it will definitely add to production cost,” Mr. Jain said.
The MIA said the decision to increase the number of industrial feeders is welcome as dedicated feeders to cater to industrial needs will eliminate uncertainty of power supply to a great extent.
Sudhakar Shetty, representing the Federation of Karnataka Chamber of Commerce and Industries, said the hike will add to the production cost.
“The hike is nominal in case of SSIs using around 500 to 1,000 units per month. But, this will be a steep burden on industries consuming more number of units and it will be add to the manufacturing cost and will be passed on to consumers,” Mr. Shetty said.
The hike comes close on the heels of the increase in petroleum and diesel rates which add to transportation cost, he said.
There are nearly 26,000 SSIs in Mysuru district of which 30 per cent have shut down while the rest are struggling to sustain. Besides, there are 100 large and medium industries which generate around 2.5 lakh jobs.
