Bangalore, June 15 (KNN) The Karnataka Small Scale Industries Association (KASSIA) will protest against the recent power tariff hike, which threatens micro and small enterprises. The increase of Rs 2.89 per unit in June, along with anticipated future hikes, burdens these businesses.

Reports of potential property tax and guidance value increases worsen the situation, eroding small enterprises' already slim profit margins. Unable to pass on the costs like larger players, small businesses suffer.

The tariff hike raises raw material and input costs, disrupting micro entrepreneurs' operations. For instance, a manufacturing unit with a monthly bill of Rs one lakh faces a 30% surge, forcing potential downsizing and job losses.

KASSIA urges the government to consider consequences. Many industrial consumers are seeking alternative power sources, reducing revenue. Energy experts predict declining manufacturing sector units and consumers, already dropping revenue from 25% to 14%.

Over 5.65 lakh MSMEs consume 2238 million units of power, employing 8% manpower per unit, affecting 1.6 crore people. The government must address these concerns.

KASSIA suggests transferring Rs. 11,000 crores in arrears and subsidies to ESCOMS, reducing loans and consumer burden.

The government must cease industry subsidies. Failure risks shutdowns or relocations, harming investment prospects and would adversely affect MSMEs.

KASSIA protests at the district level, submitting a memorandum and holding a rally. If no action is taken, a strike may follow.

KASSIA supports government freebies but not burdens alongside tariff hikes. (KNN Bureau)