Industry body PHD Chamber today urged Punjab government not to allow any hike in power tariff, saying it will badly affect the state industry.
"The proposal of the Punjab State Power Corporation Ltd (PSPCL) to hike power tariff in its ARR is demoralising for the industry," said R S Sachdeva, Co-Chairman, Punjab Committee, PHD Chamber here today.
Stating that any increase in power tariff would raise input cost for industry, he said, "many of power intensive units have already started closing down due to higher power tariff and any such proposal to hike the tariff should be withdrawn and no hike be demanded from consumers who are on high power feeders like 66 KV and 132 KV."
He suggested that the cross subsidy on power should also be reduced and relief be given to industry in the tariff order proposed for next year.
State owned power utility PSPCL is looking at 10 per cent hike in power tariff next year while projecting revenue gap of Rs 2,595.30 crore for 2014-15 in an Aggregate Revenue Requirement (ARR) petition submitted with Punjab State Electricity Regulatory Commission (PSERC).
However, he hailed the reduction in VAT on iron and steel items saying that it was a long-standing demand of the steel manufacturers.
"It is a positive step and very important for the survival of the steel industry in Punjab, the biggest market in India that consists of furnaces and iron & steel rolling mills, re-rolling mills and pipe makers," he said.
Punjab government has slahed VAT on iron and steel items from 4.95 per cent to 2.5 per cent.
"This will also help the iron & steel industry in the state reeling under the disadvantages of being in a landlocked state and far away from ports," he said.
