Coimbatore, Aug 9 (KNN) Around 40 industrial associations in Coimbatore have jointly written to the State government and Tamil Nadu Generation and Distribution Corporation (Tangedco) to withdraw the proposed  power tariff hike.

V. Thirugnanam, president of the Coimbatore District Small Industries Association, on Monday said that while the industries are not against increase in current consumption charges, the proposed hike in fixed charges will have a negative impact on Micro, Small and Medium-scale Enterprises (MSMEs).

Thirugnanam  highlighted that the demand charges will go up 17 times for industries. Similarly, peak hours have been increased and even industries and businesses that consume Low Tension (LT) power will have to pay peak hour charges. Another proposal that will hit the MSMEs hard is plan to hike the tariff by 6 per cent every year.

“There are several small businesses that function only in the evening hours. High prices of petroleum products had taken a toll on industries and trade and hike in power charges will be a blow,” C. Balasubramanian, president of Indian Chamber of Commerce and Industry, Coimbatore said.

D. Vignesh, president of Southern India Engineering Manufacturers Association, highlighted that the prices of pumps went up 40 per cent in the recent months due to high raw material prices. From last month, GST on pumps also increased.

“Our customers are shifting to Gujarat because of price competitiveness. If the power tariff goes up in Tamil Nadu, we will be unable to compete with the manufacturers in Gujarat,” he added.

According to N. Pradeep of Tamil Nadu Electricity Consumers Association added that with higher charges proposed for High Tension consumers that have windmills for captive use, investing in renewable energy for captive purposes will not be attractive.  (KNN Bureau)