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Tamil Nadu Govt Faces Pressure From MSMEs On Tariff Demands

Updated: Feb 06, 2024 03:51:15pm

Tamil Nadu Govt Faces Pressure From MSMEs On Tariff Demands

Coimbatore, Feb 6 (KNN) Micro, Small, and Medium-scale Enterprises (MSMEs) in Tamil Nadu are gearing up to confront the government over electricity tariff issues, with threats of political repercussions looming if their demands are not met.

Jayabal, president of the Recycle Textile Federation, announced that if the government fails to respond positively, they would take action that would reflect in the upcoming parliamentary elections.

The discontent among MSMEs stems from their grievances regarding electricity tariffs, particularly concerning fixed charges, peak hour charges, and networking charges for industries utilising rooftop solar power.

Despite organising multiple protests and engaging in discussions with the government since September, their primary demand for a reduction in fixed charges remains unaddressed.

Although the government made some concessions, such as a 50 per cent reduction in networking charges and exempting MSMEs from peak hour charges until the installation of required meters, the crucial issue of fixed charges persists.

The Federation had been promised a resolution, but no action has been taken thus far, prompting frustration among association members.

In response, Jayabal and representatives from the Tamil Nadu Industrial Electricity Consumers Federation have declared their intention to meet with relevant Ministers during the upcoming budget session.

However, they have warned that if the government continues to ignore their demands, they will escalate their actions and announce their next steps, hinting at potential political ramifications in the upcoming elections.

The situation underscores the challenges faced by MSMEs in Tamil Nadu, particularly regarding energy costs, which significantly impact their competitiveness and sustainability.

As the standoff between MSMEs and the government intensifies, the outcome of their negotiations and any subsequent actions could have far-reaching implications for both parties and the broader business landscape in the region.

(KNN Bureau)


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