Delhi industry upset over hike in power tariff
Updated: Jul 27, 2013 03:39:50pm
New Delhi, Jul 27 (KNN) Industry associations in the national capital, mainly in the MSME sector, today said the increase in power tariff would push up their cost of production.
The Delhi Electricity Regulatory Commission (DERC) yesterday announced hike in domestic power tariff by 5 per cent.
As per the new rates, a domestic consumer will be charged Rs 3.90 per unit for the first 200 units of power instead of the current Rs 3.70.
Each unit consumed between 201 and 400 units will cost Rs 5.80 per unit, as against the present Rs 5.50 per unit in that range of consumption.
Those who were paying Rs 6.50 per unit for consuming power between 401 and 800 units will now have to pay Rs 6.80 per unit.
Any consumption above 800 units will cost Rs 7 per unit.
Thousands of micro and small enterprises operate from their home premises using electricity as home consumers. Those units and households consuming more than 400 units a month will be affected the most as the subsidy announced by the Delhi Government is restricted to small consumers.
“Power hike will increase the problems of the small industry. They are showing subsidy as a benefit for the consumers, but it’s an additional burden. It is our tax payers money. The consumption is always more than at least 800 units per month,” Secretary General, All India Plastic Industry Association, P P Tuteja said.
The industry is already suffering due to high cost of wages, transportation, petrol and diesel. The cost of production will further increase and the MSMEs will suffer the most, Tuteja added.
Reacting to the hike in tariff, All India Air-Conditioning and Refrigeration Association (AIACRA) President Jagmit Singh said, “the government should not burden the entrepreneurs with such exceeding costs.”
Earlier this month, the government-owned oil companies had also increased the price of diesel and petrol by 50 paise/litre and Rs 1.82/litre respectively.
“The government talks about making the SMEs healthy and wanting to help them grow, but with such measures how will the SMEs survive. They are already so burdened with taxation- service tax, sales tax, excise duty, high transport cost, high labour cost and the government keeps on increasing the power tariff. I don’t understand that how they are helping the SMEs,” Singh lamented.
The depreciation of rupee against dollar has already hit the industry as it increased inflation, decreased the global demand for Indian products and increased the cost of imported raw materials.
The government has subsidies on cold storage but at the same time the cost of electricity is being excessively increased. How then will the industry sustain? Moreover, the government is not giving subsidy for those using above 500 units. 500 units is nothing for an SME, we use much more than this, he added.
In May 2013, the DERC hiked electricity rates by 1.5 per cent to adjust the power purchase cost of distribution companies. The commission earlier hiked the power rates by a massive 22 per cent in 2011. (KNN/SD)
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The Delhi Electricity Regulatory Commission (DERC) yesterday announced hike in domestic power tariff by 5 per cent.
As per the new rates, a domestic consumer will be charged Rs 3.90 per unit for the first 200 units of power instead of the current Rs 3.70.
Each unit consumed between 201 and 400 units will cost Rs 5.80 per unit, as against the present Rs 5.50 per unit in that range of consumption.
Those who were paying Rs 6.50 per unit for consuming power between 401 and 800 units will now have to pay Rs 6.80 per unit.
Any consumption above 800 units will cost Rs 7 per unit.
Thousands of micro and small enterprises operate from their home premises using electricity as home consumers. Those units and households consuming more than 400 units a month will be affected the most as the subsidy announced by the Delhi Government is restricted to small consumers.
“Power hike will increase the problems of the small industry. They are showing subsidy as a benefit for the consumers, but it’s an additional burden. It is our tax payers money. The consumption is always more than at least 800 units per month,” Secretary General, All India Plastic Industry Association, P P Tuteja said.
The industry is already suffering due to high cost of wages, transportation, petrol and diesel. The cost of production will further increase and the MSMEs will suffer the most, Tuteja added.
Reacting to the hike in tariff, All India Air-Conditioning and Refrigeration Association (AIACRA) President Jagmit Singh said, “the government should not burden the entrepreneurs with such exceeding costs.”
Earlier this month, the government-owned oil companies had also increased the price of diesel and petrol by 50 paise/litre and Rs 1.82/litre respectively.
“The government talks about making the SMEs healthy and wanting to help them grow, but with such measures how will the SMEs survive. They are already so burdened with taxation- service tax, sales tax, excise duty, high transport cost, high labour cost and the government keeps on increasing the power tariff. I don’t understand that how they are helping the SMEs,” Singh lamented.
The depreciation of rupee against dollar has already hit the industry as it increased inflation, decreased the global demand for Indian products and increased the cost of imported raw materials.
The government has subsidies on cold storage but at the same time the cost of electricity is being excessively increased. How then will the industry sustain? Moreover, the government is not giving subsidy for those using above 500 units. 500 units is nothing for an SME, we use much more than this, he added.
In May 2013, the DERC hiked electricity rates by 1.5 per cent to adjust the power purchase cost of distribution companies. The commission earlier hiked the power rates by a massive 22 per cent in 2011. (KNN/SD)
Feedback: newsdesk@knnindia.co.in
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