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Tamil Nadu MSMEs Appeal To Chief Minister Over Rising Electricity Charges

Updated: Nov 05, 2024 05:35:46pm
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Tamil Nadu MSMEs Appeal To Chief Minister Over Rising Electricity Charges

Chennai, Nov 5 (KNN) Tamil Nadu's small-scale industrialists have appealed to the Chief Minister for intervention regarding escalating electricity costs, with particular emphasis on fixed power charges affecting industrial units.

According to J James, President, Tamil Nadu Association of Cottage and Micro Enterprises (TACT), the state government's revision of fixed power charges in September 2022 has significantly impacted MSMEs.

The fixed charge increased from Rs 35 to Rs 160 for 112kw, resulting in monthly fixed power charges surging from Rs 3,750 to Rs 17,920 for industrial units.

Further complicating matters, Tamil Nadu Generation and Distribution Corporation (Tangedco) has raised power tariffs from Rs 6.55 to Rs 8.50 per unit over the past two years.

The implementation of a power fact system, recently extended to units operating below 18kw from July 2024, has resulted in penalties up to Rs 18,000 bi-monthly for small units cited for electricity wastage.

A previous government announcement from two years ago, promising to convert 3B lines to 3A lines for units consuming below 12 kw, remains unimplemented.

James notes that this conversion would reduce rates from Rs 8.15 to Rs 4.60 per unit, potentially benefiting approximately 58,000 industrial units.

The mounting electricity costs have severely impacted profit margins, forcing many small operators to cease operations as they struggle to maintain even an 8-10 per cent margin on job orders.

(KNN Bureau)

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