Power tariff hike for industries is against the tide

-30 per cent increased bills: 17 percent more as compared to Gujarat, Telangana, industries under severe strain

VAIBHAV PARWAT

Chhatrapati Sambhajinagar: A recent increase in power tariffs has adversely affected industrial consumers in Maharashtra, with the Chhatrapati Sambhajinagar district bearing the brunt of the significant surge. Approximately 9,703 industrial consumers in the district have been confronted with exorbitant electricity bills this month, reflecting a staggering 25 to 30 percent spike compared to previous billing cycles. Despite appeals to the Maharashtra Electricity Regulatory Commission (MERC) to lower tariffs, the commission has unexpectedly chosen to raise them instead, further straining the industrial sector.

Industrialists in the region lament that Maharashtra imposes the highest electricity bills among all states, particularly burdening the industry with a 17 percent higher tariff than states like Gujarat and Telangana. The cost per unit, which was previously priced at Rs 7.38, has surged to Rs 9.38 this month. In contrast, other states have taken steps to reduce power tariffs, deepening the disparity. Consequently, these escalating costs are adversely affecting the industry, escalating production expenses, and exacerbating losses, as rival states offer more competitive electricity charges.

MERC has become meaningless

Industrialists express frustration at being targeted by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) and the government, which seem to levy additional charges on industries instead of curbing electricity theft. Industrialist Manish Agrawal, criticized MERC, asserting that it has become meaningless in its decision-making.

Maharashtra is going against the tide

President of the Marathwada Association of Small Scale Industries and Agriculture (Massia), Anil Patil, emphasizes that the 25 to 30 percent tariff increase deals a severe blow to industries, especially those reliant on continuous electricity supply. The burden falls heavily on micro, small, and medium enterprises (MSMEs), as large industries are less affected and are able to maintain their profit margins. Industries requiring 50 to 100 HP power are now confronted with a 25 percent increase in their electricity bills. On average, the cost per unit, previously Rs 10, has surged to Rs 12.50.

Contemplating relocation of industry

The industrial sector in Maharashtra contributes 60 percent to employment generation, yet finds itself lacking in essential facilities. Conversely, other states provide lower power tariffs and additional incentives, making them more attractive investment destinations. Telangana and Gujarat, in particular, actively welcome new investments, compelling many industries to reconsider their options within Maharashtra and contemplate relocation.

One-day industry bandh

In response to the power tariff hike, all industrial associations plan to unite in a protest at Mantralay. They also intend to organize a one-day industrial bandh as a mark of their dissent.