Hyderabad, April 22: The small scale industrial sector is crying foul over the power utilities’ move to hike power tariff for them.
The industry, which is already reeling under the impact of power cuts, power holidays and unscheduled load sheddings will not be able to take the burden in the form of tariff hike. The hike is 50 to 70 paise per unit if power is consumed between 10 a.m. and 2 p.m. and Re. 1 if the drawal is between 6 p.m. to 10 p.m.
The sector representatives feel that the government, which cannot burden the domestic and agriculture sector for obvious reasons had decided to burden the industry.
“We do not mind power tariff hike, had other things been normal. The industry, particularly small scale industry, had suffered on account of recent bandhs and power cuts. Even when there is power supply, the quality is poor. Now this proposal for hike. It is too much,’’ FAPCCI chairman K Harischandra Prasad said.
Though the domestic and agriculture sectors had not been touched, it comes as no solace since, in the final analysis, it is the aam admi who have to pay for the tariff hike for the industrial sector as well by way of paying higher price for its products.
According to sources in the government, the power utilities, whatever burden they wanted to impose on the domestic sector, had transferred it to the industrial and commercial sectors over and above the hike proposed for these two sectors which would be hit immediately.
“The increase of 12.5 per cent in power tariff for industries is a rude blow. Tariff hike should have been staggered over years. For eight years no one talks about increasing tariff and suddenly this hefty dose,’’ rues Harischandra Prasad.
Even without tariff hike, the industry had been losing heavily. With three-day power cuts, shutdowns during power supply timings, the industry worked only for 50 per cent of its work hours in a week. Revenues to this extent had already been hit, he says.
According to 2009-10 statistics, domestic and agriculture together accounted for nearly 50 per cent of power consumption in the state. The industry, which stands first in consumption, could be targeted since the number of those who consume power is very small in relative terms.
According to Federation of AP Small Industries Association president A Vijaya Kumar, small industries would not be able to go for expansion and that there is an inherent danger that no new entrepreneurs will come forward to establish SSI units. “It is a severe blow on micro and SSI units. The sector cannot thrive at this rate of increase in tariff,’’ he said.
Rs 3,342 cr deficit for APTransco
The power utilities, in the ARR submitted to the APERC, may have projected a deficit of Rs.7,842 crore even after mopping up Rs.2,278 crore by way of enhanced tariff for 2010-11, but they could be rest assured that there is a budget allocation of Rs.4,500 crore for use as subsidy. This leaves the power utilities still short of Rs.3,342 crore. It remains to be seen how much of this burden would be borne by the state.
Though the utilities are projecting that their deficit is of the order of Rs.10,120 crore, the APERC would take a call on it and would decide how much it would be using its own methods of calculation.
The APERC may in fact revise it downwards, a senior official of the APTransco said. After holding public hearings, the APERC would decide the power tariff and issue an order at the end of July.
–Agencies