Thane, Nov 16 (KNN)  The recent hike in power tariff in Maharashtra was a blow to the state’s manufacturing sector, causing industrial output to drop by two per cent.

The Maharashtra State Electricity Distribution Company Ltd (MSEDCL) has increased the tariff by hiking cross subsidy charge (CSS) from Rs 1.18 paise per unit to Rs 2.80 paise per unit.

“As a result, taking other tariff charges, such as fuel consumption charges into consideration, industries have to shell out about Rs 9 per unit from Rs 7.50 per unit earlier. The hike has left the industries miffed, as it's becoming difficult for them to operate,” a report said.

The cost of power in Maharashtra is 25-35 per cent higher than Karnataka, Goa, Gujarat, Andhra Pradesh and Chhattisgarh, said President of Vasai Industries Manufacturer's Welfare Association (Vima) Ajay Modi.

The reduction in production is the sharpest in the Nashik zone (-7.3 per cent), followed by Nagpur (-7 per cent).

Several industry associations have held agitations against the hike.  (KNN Bureau)