Chambers of industry and commerce have criticised the tariff hike approved by the regulator saying that it has come in an inopportune time. They felt the hike was avoidable considering the low level of industrial activity across the country.
The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) said it was an inopportune moment to increase the tariff when industrial activities in the entire country are low.
"Increase in the tariff for rural consumers would hit very hard the rural industries in the context of unreliable power supply in respect of quality and continuity," said R Shivakumar, President, FKCCI.
The Associated Chambers of Commerce and Industry (Assocham) has said that increase of average tariff by only 32 paise per unit against 66 paise demanded by Escoms reflected the fine balancing act carried out by KERC.
"The Commission could have well avoided any increase in tariff if the Escoms were operating on commercial lines. Huge outstanding of various Escoms as well as late release of subsidy by the state government were responsible for gaps in revenues of power companies," said J Crasta, Co-Chairman, Assocham Southern Regional Council.
He called for efforts to enhance efficiency of power companies in the state. Reduction in distribution losses and timely collection of dues may well make Escoms profitable.
Crasta further said that at a time when some of the states, including Maharashtra, were working out ways to avoid hike in power tariff, Government of Karnataka must also come out with a policy to insulate industrial sector from burden of increase in tariff.
"To take Karnataka to top position among industrialised states, it was important that right message was given to the industry. Increase in tariff at this stage will give a conflicting signal to potential investors," Crasta added.
The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) said it was an inopportune moment to increase the tariff when industrial activities in the entire country are low.
"Increase in the tariff for rural consumers would hit very hard the rural industries in the context of unreliable power supply in respect of quality and continuity," said R Shivakumar, President, FKCCI.
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He, however, welcomed the increase in the first slab of consumption of HT from 100,000 units to 200,000 units.
The Associated Chambers of Commerce and Industry (Assocham) has said that increase of average tariff by only 32 paise per unit against 66 paise demanded by Escoms reflected the fine balancing act carried out by KERC.
"The Commission could have well avoided any increase in tariff if the Escoms were operating on commercial lines. Huge outstanding of various Escoms as well as late release of subsidy by the state government were responsible for gaps in revenues of power companies," said J Crasta, Co-Chairman, Assocham Southern Regional Council.
He called for efforts to enhance efficiency of power companies in the state. Reduction in distribution losses and timely collection of dues may well make Escoms profitable.
Crasta further said that at a time when some of the states, including Maharashtra, were working out ways to avoid hike in power tariff, Government of Karnataka must also come out with a policy to insulate industrial sector from burden of increase in tariff.
"To take Karnataka to top position among industrialised states, it was important that right message was given to the industry. Increase in tariff at this stage will give a conflicting signal to potential investors," Crasta added.