Punjab Industry reacts strongly to power tariff hike by PSPCL

Chandigarh, May 16 (KNN) The hike in power tariff announced on Monday by Punjab State Power Company Limited (PSPCL) has sparked a strong backlash from the state industry.

According to multiple industry associations, the power tariffs imposed on the industrial sector in Punjab are higher compared to Haryana or Rajasthan. They argue that such policies will discourage new investments in the state's industry.

Chamber of Industrial and Commercial Undertaking (CICU), said that PSPCL’s fresh tariffs hike for the financial year 2023-24 will be a huge burden for the industry.

“PSPCL has increased electricity charges by 0.30 paisa per unit for small and medium and 0.40 paisa per unit for large enterprises,” said CICU president Upkar Singh Ahuja, adding that MSMEs are already reeling under huge losses.

CICU pointed out that the dearth of raw materials has already escalated the cost of manufacturing, and industry is not in a situation to bear this additional burden.

The industry association have written to chief minister Bhagwant Maan demanding a withdrawal of the power tariff hike and has asked for Rs 5 per unit to MSMEs, so they can survive in this era of cut-throat competition.

Federation of Industrial and Commercial Organisation (FICO) president Gurmeet Kular termed the hike announced immediately after the results of the Jalandhar Lok Sabha bypoll as an act of deceiving the public.

“Power is one of the major raw materials for the industry, and any increase in the power cost will impact the cost of industrial products especially when the industry is working on narrow margins This is the time that the government should support the industry,” he said.  (KNN Bureau)