Struggling MSMEs say power to cost Rs 10.5/unit after hike

PATIALA: After increase in power tariff by the state government from June 1, the micro, small and medium enterprises (MSMEs), already struggling for survival, will have to face more losses, according to members of industrialist unions in Mandi Gobindgarh town of Fatehgarh Sahib.
For industrial category, the power tariff has been increased by 8 paise per unit, while fixed charges for non-residential and industrial categories have been hiked in the range of Rs 5 per KVAH and Rs 20 per KVAH respectively.
Fixed charges for industrial consumers have jumped to Rs 10 per kilowatt and this will further put them in losses. "In past few years a large number of MSME units were forced to shut down due to wrong policies of various governments. The latest industrial policy under which Punjab government promised electricity at Rs 5 per unit turned out to be a bad joke with MSMEs," said, Chapter Chairman CII Mandi Gobindgarh, Dinesh Gupta.
"The charges MSME industrialists have to pay is around Rs 9.5 per unit, whereas after recent hike of 3 percent in power tariff, electricity for small industrialists would count Rs 10.5 per unit," he said while adding that over 150 MSME units were forced to shut down in last six to seven years in Mandi Gobindgarh - Asia's leading iron and steel town.
Showing concern for MSME industry Gupta said, "MSMEs form 70% of all industries in Punjab and they usually operate for 8 to 10 hours a day. The big industry runs for over 22 hours and thus is benefited from the power policy of Punjab government. Already, MSME has been struggling and raising the issue with the state government. They have asked to put a cap over electricity charges as MSME is facing huge losses during Rs 5 per unit electricity policy of the Punjab government.
Adding that the small scale industry will have to face more losses after increase in power tariff and an increased rate of Rs 10 per kilowatt for the industry, Gupta said, "The government had promised to put a cap over electricity. It also promised to fix charges for small scale units, but nothing happened."