Medium, Small and Micro Enterprises (MSMEs), particularly fabrication and ancillary units of BHEL in Tiruchi, are facing the heat due to escalating electricity charges.
For the MSMEs in the Tiruchi region, which are already facing tough times due to the decreasing orders from the BHEL, the steep hike in power tariff effected in November 2022 came as a rude shock. The introduction of peak hour charges also aggravated the situation. When the industrial and commercial forums had been urging the State government to reduce the electricity charges, the Tamil Nadu Generation and Distribution Corporation (Tangedco) made an upward revision in power tariff from July 1.
As per the orders, the consumption charges for the High Tension industries, factories and IT services under category HT-1 category have been increased to ₹6.90 per unit from ₹6.75 per unit. The demand charges or fixed charges have also been increased to ₹562 KW per month from ₹550 KW per month. For industries and IT services under the LT-III B category, the consumption charges have been hiked to ₹7.65 per unit from ₹7.50 per unit.
Proprietors of MSMEs have been receiving the electricity bills after the recent revision. Many of them were perturbed over the escalating electricity charges. It is the hike in fixed and peak hour charges that is worrying them.
Prior to the upward revision in 2022, the fixed charges were ₹35 per kW. Now, for an industrial unit, which has a 112 KW demand, the fixed charges come to ₹62,944 per month.
“More than half of the small and medium industrial units in Tiruchi have already become sick due to various reasons. Several of them operate for about eight hours a day. A section of them does not operate at all. But, whether they are operated or not, they will have to pay the fixed charges. It is totally unacceptable and unfair,” says N. Kanagasabapathy, Chairman, Tiruchi Trade Centre.
When the industrial units threatened to close their operations for a day to register their protest against the abnormal hike in fixed charges and peak hour charges, Chief Minister M.K. Stalin and then Electricity Minister V. Senthilbalaji promised to take suitable action with the representatives of industrial forums. But, the promise has not been met, the entrepreneurs charge.
“Several industrial units have turned into non-performing assets due to various reasons. The electricity bills generated based on the recent revision of power charges have added fuel to the burning issues. If the State government fails to take suitable action on power tariff, more units will get into red,” says Rajappa Rajkumar, president-in-charge, of Tamil Nadu Boiler Association, Tiruchi.
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