Bizmen look up to state govt, Centre for lower rate for power across country

Ludhiana: Disturbed over shrinking incomes and rising expenditures, businessmen are looking towards both state and central governments for taking steps to ensure that the industry gets back on the path of progress. According to businessmen, the immediate step which the governments can take right now is lower the power rates and fix them at a flat rate of Rs 3 per unit all across the nation and if this happens they can even topple China in terms of industrial production.
Speaking to TOI, Upkar Singh Ahuja , president of Chamber of Industrial and Commercial Undertakings (CICU), said, “Power is a major contributor in the expenditure of the industry, be it of any type, and it should be one rate nationwide. If you see the example of China the power there is at a flat rate of Rs 3 all across the nation for the industry. The flat rate is the major deciding factor in the cost of production and the final rate of the product. If the rates are nominal and same all over India for the industry, it will not only create a level playing field for the industry all over the country but will also lower our cost of production significantly to such levels that we will easily be able to have an edge in exports as well and topple countries like China easily at the global level.”
According to Narinder Bhamra, president of Fasteners Manufacturers Association of India, “Lowering the rate of power is the need of the hour in Punjab, particularly in the wake of the ongoing situation due to Covid-19 as industry’s profits have shrunk to record levels and expenditures have shot off manifold. Right now, we are paying a very huge cost of power and rates for majority of the industry are as high as Rs 8-Rs 10, which are the highest in the country. The rates should not exceed Rs 5 per unit in any case and if the state government reduces the rates, the industry will be able to bounce back at the earliest. Moreover, the central government should make sure that the power rates for the industry are same in all states as this will stop undue advantage to industries located in some states and all states will prosper equally.”
Sahil Suneja, a packing boxes manufacturer, “Electricity is like a raw material for the industry and it is the major deciding factor in determining the cost of our products. So, higher the rate of power, higher our cost of production and higher the final rate of our products. High rate of power has been pinching us for years now and now in the wake of rising losses due to Covid-9 the situation has deteriorated. So, it will be in the best interest of Punjab’s industry if the rates of power are reduced and moreover, the rates of power should be kept flat all over India.”