 "AP industry opposes hike in power tariff")
Andhra Pradesh industry associations have opposed the power tariff hike stating the move would lead to closure of manufacturing units in large numbers.
The contribution of industrial sector to the gross state domestic product (GSDP) was just about 11 per cent till recently as compared with the national average of 16 per cent, 27 per cent in Gujarat and 26 per cent in Tamil Nadu. "Now, this contribution has slipped to single digit (below 10 per cent) owing to the production loss on account of power cuts," Devendra Surana, president, Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci), said on Monday.
The fresh increase in industrial tariff, which according to him is 33 per cent over the existing rates, was announced by the government and the Andhra Pradesh Electricity Regulatory Commission (Aperc) unilaterally without taking the industry views.
As a result, the industrial tariff has doubled just in three years to Rs 7 per unit from Rs 3.50 per unit in April 2010, according to him.
In addition to the unit prices, the power utilities have also raised the demand charges while the periodic levying of fuel surcharge adjustment (FSA) adds more than Re 1 per unit in proportion to the power consumed by units, industry representatives said.
According to Nageshwar Rao, president of Federation of Andhra Pradesh Small Industries Associations (Fapsia), around 6,000 units, mostly small enterprises, have become NPAs while 200,000 workers have already lost their jobs due to the ongoing power crisis.The government has allowed a fresh round of tariff increase without considering the ground realities in the state industrial sector, which is facing production loss of 45 per cent and employment loss of 40 per cent.
The contribution of industrial sector to the gross state domestic product (GSDP) was just about 11 per cent till recently as compared with the national average of 16 per cent, 27 per cent in Gujarat and 26 per cent in Tamil Nadu. "Now, this contribution has slipped to single digit (below 10 per cent) owing to the production loss on account of power cuts," Devendra Surana, president, Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci), said on Monday.
The fresh increase in industrial tariff, which according to him is 33 per cent over the existing rates, was announced by the government and the Andhra Pradesh Electricity Regulatory Commission (Aperc) unilaterally without taking the industry views.
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Surana said the industry was being charged at an unreasonable premium of 60 per cent over the cost of service as against the national policy, which mandates a maximum of 20 per cent only, because the government was indirectly shifting the burden of free power to the farm sector to the industries.
As a result, the industrial tariff has doubled just in three years to Rs 7 per unit from Rs 3.50 per unit in April 2010, according to him.
In addition to the unit prices, the power utilities have also raised the demand charges while the periodic levying of fuel surcharge adjustment (FSA) adds more than Re 1 per unit in proportion to the power consumed by units, industry representatives said.
According to Nageshwar Rao, president of Federation of Andhra Pradesh Small Industries Associations (Fapsia), around 6,000 units, mostly small enterprises, have become NPAs while 200,000 workers have already lost their jobs due to the ongoing power crisis.The government has allowed a fresh round of tariff increase without considering the ground realities in the state industrial sector, which is facing production loss of 45 per cent and employment loss of 40 per cent.