China’s capability to manufacture goods at a cheaper price was linked to the ever-increasing cost of power in India, particularly Karnataka. This was stated at a public hearing organised by Karnataka Electricity Regulatory Commission (KERC) in Mysuru on Tuesday.
Hussain, representing small scale industries in the State, said several industries in Karnataka had halted production of many goods including umbrellas and stationery in view of the availability of their cheaper versions made in China. “China does not have manganese or iron ores. They import iron ore from India. But, the steel manufactured in China is available at a very cheap price because of the cost of energy is very low there,” Mr. Hussain said.
Though India has levied an anti-dumping duty, Chinese goods are still making their way into the country through Thailand. Many manufacturers are out of business, he said. He urged the Commission, chaired by Shambu Dayal Meena to reject Chamundeshwari Electricity Supply Corporation’s (CESC) proposal to raise the power tariff. He regretted that the KERC obliges the ESCOMs proposal to increase power tariff every year.
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Questioning the revenue deficit showed by CESC, Mr. Hussain said the ESCOM should make up losses through internal management including judicious management of staff and finances, besides purchasing power at a cheaper cost. “They are confident that the KERC will allow the increase every year and make no effort to tighten its belt,” he said appealing to the KERC not to allow any hike in power tariff this year.
Meanwhile, the CESC’s proposal to increase power tariff by 99.56 paise per unit was almost unanimously rejected by representatives of the general public, industries and commercial establishments at the hearing.
Savitha Ranganath, participating in the hearing, suggested that the KERC allow a hike in the tariff only for consumption during peak hours and offer incentives to domestic consumers, who save power. Also, she urged the KERC to allow hike in power tariffs annually. A hike in electricity tariff should be allowed only once in three years, she said.
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N.P. Nagaraj, representing JSS Mahavidyapeetha, questioned the CESC’s decision to categorise not just their educational institutions, but also their hostels and charitable institutions under commercial category. “How can we collect commercial electricity tariff from a poor student staying in a hostel,” he questioned.
Sundar Raj, representing Kollegal Electricity Users, said the CESC offers no facilities to consumers in rural areas like Kollegal.