As KERC hikes power tariff, KASSIA says it will hit MSMEs in state

Bengaluru, Apr 11 (KNN) The Karnataka Small Scale Industries Association (KASSIA) has expressed disappointment and concerns that the power tariffs have again been raised by the KERC.

The tariffs  have been revised in the BESCOM area from 15 ps. to 50 ps  depending on the category and in other ESCOMS  areas from 25 ps. to 50 ps. 

“KASSIA had strongly argued against any power tariff hike as these annual hikes have made it very difficult for micro and small industries to operate in the State.  The ESCOMS have, instead of tightening belts a tendency to pass on the  burden to the consumers, particularly industry, which is no longer in a position to pay,” A Padmanabha, President, Kassia said.

He said MSMEs have been undergoing severe hardship on account of global recession, reduced sales and the recessionary conditions prevailing in the domestic market. 

Any further burden in terms of increased power tariffs on them will be completely counter-productive and lead   to closure of many units and loss of jobs.  As such the share of industries consumption in the total power consumption in the State from the grid has gone down steeply over the years, he added. 

The industry body said that KERC should direct the ESCOMS to manage their affairs better by reducing distribution losses, improving efficiency of delivery and increasing productivity instead of burdening industry year after year, particularly the SMEs, which are in no position to pass on the increased costs.

KASSIA has urged the Government not to increase tariffs for micro and small industries as it will further cripple them in the State. (KNN Bureau)