UP industries in shock due to power tariff hike by 5.4%
Updated: Jun 19, 2015 04:32:26pm
Lucknow, June 19 (KNN) The UPERC’s decision to increase power tariff in the state by 5.4 per cent has not gone down well with the small and medium enterprises. The UP industrialists have slammed the discoms decision saying the move would make survival more difficult for them.
UPERC on Thursday approved a tariff hike of 5.4 per cent, 5.16 per cent and 11.97 per cent for industries, commercial and agricultural connections respectively. New prices will be in effect from July 1, 2015.
The industries in UP are the one to be directly affected by this decision. The hiked prices have put immense pressure on the industries, as their cost of production is likely to go up.
“Survival of the industry becomes very difficult” remarked a UP based entrepreneur Naveen Jain on the issue.
Jain, Managing Director of Dayachand Engineering in Muzaffarnagar, added that the hike in power tariff would push the prices of their products higher making them uncompetitive in comparison to the neighboring states.
Neeraj Kedia, Managing Director of Chakradhar Chemicals in Muzaffarnagar, was of the view that “This kind of hike in tariffs is affecting the industry in an adverse way.”
“The Quality of the governance is very poor” he said adding that the power supply was already less in the industrial area, and the hike in electricity tariff is only going to make it worse.
Slamming the decision, he said this way the government is only encouraging the small industries to shut down.
Kedia, who is also a past President of FISME, said government’s major concern should be to increase the efficiency of the power supply department of the state rather than increasing prices and making the industry suffer.
As per the new tariff order, a consumer will now have to shell out Rs 4.40 per unit for the first 150 units as against Rs 4.00 which was the case earlier. This would subsequently rise to Rs 4.95 (instead of Rs 4.50) up to 300 units. The per unit charge would then go up to Rs 5.60 (as against Rs 5.00) up to 500. Consumption above 500 units will cost Rs 6.20 per unit instead of Rs 5.50 per unit in 2014-15. The fixed charge that a consumer pays on per kilowatt connection too has been jacked up from Rs 75 per kilowatt to Rs 90 per kilowatt.
The new rates would be effective from July 1 after the Uttar Pradesh Power Corporation, the state-owned power utility, issues a public notice to this effect. (KNN/J)
UPERC on Thursday approved a tariff hike of 5.4 per cent, 5.16 per cent and 11.97 per cent for industries, commercial and agricultural connections respectively. New prices will be in effect from July 1, 2015.
The industries in UP are the one to be directly affected by this decision. The hiked prices have put immense pressure on the industries, as their cost of production is likely to go up.
“Survival of the industry becomes very difficult” remarked a UP based entrepreneur Naveen Jain on the issue.
Jain, Managing Director of Dayachand Engineering in Muzaffarnagar, added that the hike in power tariff would push the prices of their products higher making them uncompetitive in comparison to the neighboring states.
Neeraj Kedia, Managing Director of Chakradhar Chemicals in Muzaffarnagar, was of the view that “This kind of hike in tariffs is affecting the industry in an adverse way.”
“The Quality of the governance is very poor” he said adding that the power supply was already less in the industrial area, and the hike in electricity tariff is only going to make it worse.
Slamming the decision, he said this way the government is only encouraging the small industries to shut down.
Kedia, who is also a past President of FISME, said government’s major concern should be to increase the efficiency of the power supply department of the state rather than increasing prices and making the industry suffer.
As per the new tariff order, a consumer will now have to shell out Rs 4.40 per unit for the first 150 units as against Rs 4.00 which was the case earlier. This would subsequently rise to Rs 4.95 (instead of Rs 4.50) up to 300 units. The per unit charge would then go up to Rs 5.60 (as against Rs 5.00) up to 500. Consumption above 500 units will cost Rs 6.20 per unit instead of Rs 5.50 per unit in 2014-15. The fixed charge that a consumer pays on per kilowatt connection too has been jacked up from Rs 75 per kilowatt to Rs 90 per kilowatt.
The new rates would be effective from July 1 after the Uttar Pradesh Power Corporation, the state-owned power utility, issues a public notice to this effect. (KNN/J)
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