Nashik exporters oppose increase in power tariff

The Nashik Industries and Manufacturers' Association (Nima), Laghu Udyog Bharati (LUB) and Nashik District Exporters' Association (NDEA) have strongly opposed Maharashtra State Electricity Distribution' s (MSEDCL) proposed power tarrif hike.

They urged the Maharashtra Electricity Regulatory Commission (MERC) to stop the move.

During a public hearing, they asked the MERC to improve the transmission and distribution system, rather than going for a tarrif hike.

Dr Pramod Dev, chairman, MERC, was in Nashik for a public hearing on the proposed tariff hike. During the hearing, industrial organisations spelled out the ways to improve the transmission and distribution system.

They also asked MSEDCL to take efforts to reduce losses, power theft and cost of power generation by using hydro, switching over to coal or gas instead of the costly naphtha and reducing the distance between generation stations and dispatch centres.

"MSEDCL has already increased the tariff by way of FOCA (fuel charges) under variable cost, which are consistently increasing every month and now it has gone up almost more than 800 per cent from December 2003 to July 2006. Hence, MERC should not permit the increase in tariff at all. It will cause increase in production cost," said MN Bramhankar, chairman, power sub-committee, Nima.

MSEDCL's Transmission & Distribution Losses (TDL) in eight circles are 45 per cent to 60 per cent. Instead of using the costly naphtha, alternatives like hydro, gas or coal can be tried out to reduce cost of power generation. Dams in the state can be pumped in for use, noted Bramhankar.

"Industrial scenario in our state is improving. Exports are increasing and we have competition from nearby states and many countries," said Ramesh Pawar, president, NDEA.