Power cost increase hits plastic SSIs

Plastic processing units in West Bengal were facing closure because of a rise in electricity charges had eroded their viability.

Indian Plastic Federation was considering to move court against the diktat of West Bengal State Electricity Board (WBSEB) over the issue of withdrawal of concession on power tariff.

J C Agarwal, president of Indian Plastic Federation, said many of the 1600 plastic units of the state would become unviable.

"We have sought help from the West Bengal industries minister Nirupam Sen," he said.

Agarwal said cost of production would go up by 2-3 per cent following withdrawal of concession.

"In a commodity business, this is a big jump. Not many would be able to absorb it," he claimed.

The Rs 1,600 crore industry consumed about 50MW power a month.

Most of it was supplied by WBSEB. The industry employs about 20,000 people. Electricity was about 40 per cent of processing cost.

WBSEB withdrew the concession after a meeting with high-tension industrial consumers on June 23.

The withdrawal of concession with effect from this fiscal would be applicable to sick units and those under rehabilitation schemes as well.

Earlier, consumers drawing power at 66/132/220 KV enjoyed a 40 per cent concession on the total energy charge for the first three years.

In the subsequent three years, the rate of concession was 25 per cent, 20 per cent and 15 per cent respectively.