Industries in crisis due to rising electricity rates

Aurangabad, Jan 15:

Rising electricity rates have made it difficult for the industries to carry on business in the state. Electricity is an important factor for industries like steel, plastics, chemicals, textiles and rolling mills. Therefore, electricity tariffs should be within the reach of entrepreneurs, said Abhay Hanchanal, president, Marathwada Association of Small Scale Industries and Agriculture.

The rising prices of raw material and electricity have made it difficult for small and medium entrepreneurs to do business. Most of the companies are still have not secured sufficient orders due to covid. Similarly, several charges have also added to their problems.

Hanchanal said industries need to get electricity at fair and competitive rates to sustain in the state. For this, industries have open access to electricity and solar energy. However, in both cases, there are problems that need to be addressed.

Cross subsidy surcharge, additional charge, wheeling charges, transmission charges have to be paid for open-source electricity. The total load is Rs 4.01 per unit as per the current assessment.

Wheeling losses and transmission losses are 10.7 per cent. Apart from this, processing charges and operating charges are also a monthly burden. This has made it impossible for industries in the state to get electricity in open access. A fair pricing decision must be made by state energy minister.

If industries set up solar power generation projects, all the electricity should be used by the industries concerned. If the system of MSEDCL or distribution licensee is being used for this, then a fair charge should be levied for that use, said Hanchanal.

He also demanded that power tariffs could be reduced if the state government provided substantial financial assistance. For this, industry minister Subhash Desai must take follow up.