| "Non adherence to contracts is something that a state government cannot afford - this will send wrong signals to potential investors," explained M L Beswal, president, Hoogly Chamber of Commerce & Industry (HCCI). |
| "This will also render a number of industries sick. Ferro alloys, pharmacy and plastics units would be the worst hit," he added. |
| "While the West Bengal Electricity Regulatory Commission (WBERC) had mentioned about doing away with subsidy component in tariff, the recently announced tariff and the Electricity Act does not mention anything about withdrawal of concessions," Beswal pointed out. |
| The concession was actually being provided by the West Bengal state government in form of relief on the duty component of tariff for new and sick companies which was around 7.5 per cent of the tariff amounting to 30 paise per unit. |
| Sources said the government was, instead considering the possibility of providing some duty relief to the domestic consumers through WBSEB. |
| Companies which had set up units, or were in the process of setting up units to take advantage of the concession, would have to rework their financial plans and reassess their viability. Many would close down. |
| The government, through WBSEB, had entered into agreement with new companies. Under the scheme, concessional tariff was promised for six years at diminishing rates. Under the scheme new units would be provided concession at 25 per cent for the first three years and 15 per cent, 10 per cent and 5 per cent in the last three years. |
| This was in fact the government's decision which was implemented through WBSEB because the duty component on tariff gets channelled to the state government's kitty. |
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