BHEL Small Industries Association (BHELSIA) has expressed dismay over the steep increase in power tariff effected by TANGEDCO.
"It is very unfortunate that the State Government has imposed huge increase in the power tariff. The objections raised during consultations have been totally ignored. Implementation of the revised tariff will result in total disaster for MSME units in Tamil Nadu," Rajappa Rajkumar, president of BHELSIA said.
The implementation must be paused immediately and there should be further consultations with industry associations, he said. The MSME units in Tiruchi region were already in a highly critical condition due to general recession since 2014. Most of the units were under severe stress and 25 percent of the units had become NPA, leaving several workers jobless, Mr. Rajappa Rajkumar said in a press release.
The Central government has only extended short-term relief. If the situation prevails, the MSME units may shift their operation to other states. This will affect the tax income of the State government in a big way, Mr. Rajappa Rajkumar said, appealing to the Chief Minister and the Electricity Minister to address the issue on a priority basis.
In another press release, N. Kanagasabapathy, Chairman, Tiruchi Trade Centre, said the revised tariff will spell doom for the MSME sector that were already bogged down by GST, COVID, and rise in fuel price. “The mindless increase in the power tariff was ill-advised and unjustified,There are indications that more than 80% of the consumers will apply for reduction on connected load with immediate effect in order to continue to run their industrial units as the new charges will be unaffordable,” he said.
The Government which was expected to bring about industrial growth is going to be responsible for not just fall of industrial growth, but doom of a majority of industries. The industries that were limping back to normalcy after the upsets caused by COVID pandemic and other factors like GST and demonetization will be pushed into a situation of closing down.
A minimum of 50 percent of the industries will be forced to close, unless the State Government rolls back the "unjustified, unreasonable, and unmindful" tariff revision, Mr. Kanagasabapathy said.
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