State chairman of the Confederation of Indian Industry (CII), Jay Galla, has expressed concern over the proposed 10 per cent hike in power charges for commercial and industrial users.
The increase for high tension (HT) consumer from the present Rs 4.24 to Rs 5.34 per unit will lead to an increase in the cost of production. It will also make the state industry less competitive compared with other states, he said in a press release on Tuesday.
The state government justified the power tariff hike by citing the increasing power revenue deficit. However, Galla said the government could have reduced the power subsidies and employed better expenditure management methods instead of hiking the tariff rates.
“As the industry is already reeling under a two-day power holiday in a week, the levying of variable tariff depending on the time of the day for industries will lead to a greater burden for the industry,” he said.
Galla is also of the view that the timing of the proposed power hike for the industry would send a wrong signal for the prospective investors especially at a time when an international event like Partnership Summit is going to be held here next month.
