Micro units in Coimbatore to stage protests if power tariff is increased

The Federation of Coimbatore Industrial Association, representing nearly 17 industrial associations here, have urged the State government to not implement the proposed hike in power tariff.

J. James and S. Surulivel, co-ordinators of the Federation, said the fixed charges for LT CT (Low Tension Current Transformer) consumers is increased from ₹35 to ₹350. Further, these connections have peak hour charges, according to the proposal. For High Tension (HT) consumers, the peak hour charges are increased by 5 %. Apart from these, the plan is to revise the tariff 6 % every year. Most of the MSMEs fall in the LT CT category and the proposed tariff will hit the units badly. It will derail the State’s plans for a one trillion dollar exports by 2030.

Mr. James said that if the government goes ahead with the proposed hike, the micro and small-scale units here will stage protests.

The job working powerloom units’ association of Coimbatore and Tiruppur district said if the government does not withdraw its proposal to hike the power tariff in a week, its members will decide the future course of action. Representatives of the association plan to meet the Ministers concerned shortly in this regard.

S. Muthu Kumar, chairman of Institute of Indian Foundrymen, Southern Region, said in a press release that between 2008 and 2015, when the State faced disruptions in power supply, several casting buyers turned away from Tamil Nadu. The orders shifted to other States and expansion and new investments also moved away from Coimbatore. Foundries, which support other engineering units, need continuous supply of quality power. With the government proposing a steep hike in tariff now, the Association demanded permission for minimum billing demand of 85% of contracted load (or) actual recorded demand, whichever is higher. Further, the existing peak hour tariff of 20% and timing of 6 hrs in two slots 6 a.m. to 9 a.m. and 6 p.m. to 10 p.m. should be maintained.

The night hour rebate should be allowed as 20% on energy charges which will encourage more users to use power during night hours. The sudden increase in electricity charges will be a major hurdle for the foundries in the State in meeting the demands of the buyers, he said.

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Printable version | Aug 4, 2022 5:06:37 pm |