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Chaos over power tariffs, MSMEs in Punjab call for a state-wide hunger strike

Updated: Dec 12, 2017 06:51:05am

Chaos over power tariffs, MSMEs in Punjab call for a state-wide hunger strike

New Delhi, Dec 12 (KNN) With no implementation of the promised reduction in power tariffs, the industry comprising of a fair share of the Micro, Small and Medium Enterprises (MSMEs) in Punjab have called for a state wide indefinite hunger strike from 21st December, Federation of Punjab Small Industries Association (FOPSIA) informed.

Talking to KNN, Badish Jindal, President of FOPSIA informed of the main reasons for which the industry plans to go on strike.

Jindal said that the industry has been subject to harassment over the power issue and the government is good with words and not with action so far.

Retrospective Pricing

Jindal said that the Punjab State Electricity Regulatory Commission (PSERC) recently rolled out notification demanding retrospective bills for the last seven months in which the industries are asked to pay the margin.

“We have produced and sold items based on the tariff that was set, now the board comes up saying you were supposed to pay more, how do we pay this”, Jindal raised.

2 Part Tariff structure

Jindal said that at a time when the industry is already struggling with different complications including the newly rolled out Goods and Services tax (GST) in the country, now the board has announced 1 part power tariff to be implemented from January.

Under the two part structure, the industry will be asked to pay fixed charge plus recurring charges, this will create stress in the sector and the sick units will have to shut their operations, Jindal said.

Announcement but no Implementation

Jindal said that the government had put in its manifesto that it will consider reduction of power tariffs to 5 rupee per unit, following which the government hailed that it has passed it in the house as well and it ended there.

There is no implementation of the same, nor is the government willing to inform as to when would they be actually implementing the new tariff, how do the MSMEs operate in such a scenario , Jindal added.

Jindal informed that the representatives of different industry organizations including United Cycle and Parts Manufacturers Association, Amritsar Cycle Parts Manufacturers Association, Federation of Jalandhar Chamber of Industries, Machine Tools Association, Federation of Punjab Small Industries Association (FOPSIA), Chamber of Industrial and Commercial Undertakings (CICU), Plastic Association Punjab, Induction Furnace Association, North India and Furnace Association, will sit on an indefinite hunger strike till the government comes out with a firm plan. (KNN/ DA)


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