Industries in Coimbatore seek withdrawal of proposed hike in fixed and peak hour charges

Nearly 40 industrial associations in Coimbatore have jointly represented to the State government and Tamil Nadu Generation and Distribution Corporation (Tangedco) to withdraw the proposal to increase fixed charges and peak hour charges for trade and industry.

V. Thirugnanam, president of the Coimbatore District Small Industries Association, told presspersons here on Monday that while the industries are not against increase in current consumption charges, the proposed hike in fixed charges will have a negative impact on Micro, Small and Medium-scale Enterprises (MSMEs).

The demand charges (fixed charges) will go up 17 times for industries. Similarly, peak hours have been increased and even industries and businesses that consume Low Tension (LT) power will have to pay peak hour charges. Another proposal that will hit the MSMEs hard is plan to hike the tariff by 6 % every year. These three proposals should be withdrawn, he said.

According to C. Balasubramanian, president of Indian Chamber of Commerce and Industry, Coimbatore, all businesses will be affected by the plan to levy peak hour charges. There are several small businesses that function only in the evening hours. High prices of petroleum products had taken a toll on industries and trade and hike in power charges will be a blow, he said.

D. Vignesh, president of Southern India Engineering Manufacturers Association, said the prices of pumps went up 40 % in the recent months due to high raw material prices. From last month, GST on pumps also increased. “Our customers are shifting to Gujarat because of price competitiveness. If the power tariff goes up in Tamil Nadu, we will be unable to compete with the manufacturers in Gujarat,” he said.

According to G. Arulmozhi, president of Open End Spinners’ Association, production at the spinning mills is down 50 % because of slowdown in demand. With higher fixed charges and peak hour charges, the mills will find it unviable to operate. Further, mills with LT or LTCT connection cannot go in for renewables for captive use, he said.

N. Pradeep of Tamilnadu Electricity Consumers Association added that with higher charges proposed for High Tension consumers that have windmills for captive use, investing in renwable energy for captive purposes will not be attractive.

S. Surulivel, vice president of Tamilnadu Small and Tiny Industries Association, said LT and LT CT consumers across the State will be hit badly by the proposed hike in charges.

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Printable version | Sep 18, 2022 8:48:06 am |