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KASSIA insists CM Bommai to make latest downward tariff revision applicable to all ESCOMs for MSMEs

Updated: Jan 17, 2023 08:34:59am

KASSIA insists CM Bommai to make latest downward tariff revision applicable to all ESCOMs for MSMEs

Bengaluru, Jan 17 (KNN) Asking the Karnataka government to provide some relief to small scale industries, Karnataka Small Scale Industries Association (KASSIA) has requested Chief Minister Basavaraj Bommai to make the latest downward tariff revision applicable to all ESCOMs.


K.N. Narasimha Murthy, President, KASSIA urged the CM to take note of the serious concerns of the MSEs and in the interim appealed to withdraw the amendment to the Karnataka Electricity Reforms permitting the adjustment of government’s pension contribution through tariff to be borne by the consumer.

The Energy Department, is proposing to take away in one hand what it is giving in the other, by reducing the tariff in BESCOM and MESCOM limits while burdening the consumers for the pension payable to its employees, said KASSIA, in a press release.

“Vide Notification dated 31.12.2022 the Government of Karnataka, by amending the Karnataka Electricity Reforms, has directed the KPTCL to claim the Government portion of Pension Contribution through tariff by filing an application before the State Regulatory Commission,” pointed out Murthy.

KASSIA has called it a case of illogical and unwarranted recovery of an institutional liability from the consumer, who is in no way connected to such expenditure.

“While the government has also announced a latest downward revision of tariff limited to BESCOM and MESCOM limits, this is a limited relief, and when juxtaposed against the recovery of pension liability from the consumer is virtually nullified,” it added.

“In addition to the unwarranted recovery of pension payment burden estimated at Rs 3353 crore payable in three annual instalments. Further, the electricity fixed charges will also be doubled,” he pointed out and added that there were other costs for the small scale industry which had shot up to unprecedented levels.

“The consent fee levied by the Karnataka State Pollution Control Board (KSPCB) has been increased by over 100 times, which has no rationale. Further there has also been an increase in property tax,” he said.

All these multiple burdens will collectively hit the nearly 535,320 small scale industries and over 15,147 HT consumers severely.

“Our assessment is that quite a few of the micro and small scale industries might choose to shut down temporarily or permanently or even consider shifting their operations to other nearby States. This will directly affect the livelihood of more than one and a half crore family members of those working in MSMEs,” he cautioned.  (KNN Bureau)


  1. Bhimashankar  B patil
    Bhimashankar B patil 17/01/2023 10:30 AM

    Kalaburagi investment area industry

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