Resentment is brewing among industrial consumers in the MSME sector after they were forced to shell out hefty power bills, despite an assurance that they would be given a three-month waiver of fixed/minimum demand charges.
Sources told The Hindu that though the per unit cost of power purchased from the Central Grid and independent power purchasers is less than ₹3, authorities are selling it at ₹9 to ₹10 per unit to MSMEs depending on their consumption by collecting minimum usage charges and transmission and distribution costs.
On waiver of three months’ tariff, the distribution company is first insisting on payment of bills and asking the MSME units to claim the reimbursement later, it is learnt. When contacted, Superintending Engineer T.V. Surya Prakash said that after payment, one has to apply through a government portal and get certification by a committee headed by the General Manager of District Industries Centre for release of the amount to the eligible beneficiaries.
‘Manpower problem’
“Many of the units are turning sick due to steep overhead costs. We are asked to pay monthly bills first and later claim reimbursement from the government,” A.K. Balaji, president of Visakha Autonagar Industrialists’ Welfare Association, said.
He said that of the 6,000 MSME units, many are facing a threat of collapse due to heavy losses suffered during the lockdown. Now, they are finding it difficult to restart operations as most of the workers are yet to return from their native places.
“The tariff being paid by the industrial users is very high, thereby killing off many of the units,” said O. Naresh Kumar, director of A.P. Chambers of Commerce and Industry Federation.
He said that power was available even from IPP (solar and wind) at less than ₹3 per unit and the benefits should be passed on to the MSMEs and industrial consumers. “We must mandate a uniform power policy. Ease of doing business would improve if the tariffs are brought down,” he said.
While praising Chief Minister Y.S. Jagan Mohan Reddy for his decision to write off minimum demand charges for three months to the MSME sector, Kankatala Mallik, president, Vizagapatam Chamber of Commerce and Industry, said the same benefit should also be extended to retail sector and malls which were shut down during the lockdown.