Coimbatore Industries Demands Withdrawal of Proposed Rise in Fixed Charges and Peak Hours
Nearly 40 industry associations in Coimbatore jointly represented the state government and the Tamil Nadu Generation and Distribution Corporation (Tangedco) to withdraw the proposal to increase fixed charges and peak hour charges for commerce and industry.
V. Thirugnanam, chairman of the Coimbatore District Small Industries Association, told reporters here on Monday that while industries are not against the increase in current consumption charges, the proposed rise in fixed charges will have an impact negative on micro, small and medium-sized enterprises. enterprises (MSMEs).
Power charges (fixed charges) will be multiplied by 17 for industries. Likewise, peak hours have been increased and even industries and businesses that consume low voltage (LV) electricity will have to pay peak hour charges. Another proposal that will hit MSMEs hard is the plan to increase the tariff by 6% each year. These three proposals should be withdrawn, he said.
According to C. Balasubramanian, Chairman of the Indian Chamber of Commerce and Industry, Coimbatore, all businesses will be affected by the proposed peak hour charge levy. There are several small businesses that only operate in the evening. High prices for petroleum products have weighed on industries and commerce and rising electricity tariffs will be a blow, he said.
D. Vignesh, president of the Southern India Engineering Manufacturers Association, said pump prices had risen by 40% in the past few months due to high raw material prices. Since last month, the GST on pumps has also increased. “Our customers turn to Gujarat because of the price competitiveness. If the electricity tariff increases in Tamil Nadu, we will not be able to compete with manufacturers in Gujarat,” he said.
According to G. Arulmozhi, president of the Open End Spinners’ Association, spinning mill production has fallen by 50% due to the slowdown in demand. With higher fixed loads and peak hour loads, factories will find their operation unsustainable. Additionally, plants with an LT or LTCT connection cannot opt for captive-use renewables, he said.
N. Pradeep from the Tamilnadu Electricity Consumers Association added that with higher tariffs on offer for high voltage consumers who have captive use wind turbines, investing in renewable energy for captive use will not be attractive.
S. Suruvel, vice president of the Tamilnadu Small and Tiny Industries Association, said LT and LT CT consumers across the state will be hit hard by the proposed fee hike.