Industries in parts of Karnataka consider shutting down over power tariff hike

BENGALURU: Already under pressure to deliver on its guarantee of 200 units of free power and drawing flak from the agricultural sector over linking of pump sets with Aadhaar numbers, the state government is in a fix with industry bodies threatening to shut operations over the "unscientific" revision of tariff for industrial sectors. Close on the heels of formation of the full-fledged cabinet, industry associations have decided to exert pressure on the government to turn down the latest tariff order.
Dismayed by the steep hike in tariff, industry associations, including small-scale, micro and medium industries across Bengaluru and other parts of Karnataka, have conveyed a strong message to the government to revise the tariff and facilitate industrial sector-friendly ambiance. Upset over the substantial increase in tariff, the associations had met a few days ago in Bengaluru and decided to observe a bandh if there is no silver lining to their problem.
"It is impossible to survive under the new tariff as it will lead to severe losses for us. The revision has rubbed salt in our wounds, especially at a time when we were about to make a comeback economically. It is irrational to revise the tariff from Rs 7 to Rs 9 per unit," explained KN Narasimha Murthy, chairperson of Karnataka Small Scale Industries Association, which covers over five lakh small and micro industries in Bengaluru and Karnataka.
"We understand that the government's focus will be on supplying free power to the people as promised during the polls. We have no objection to it. But our plea is that the government should also take us into consideration just as the domestic sector. After all, we create thousands of jobs and contribute considerably to the GST collection and impact the GDP growth of the state. Our demand to the CM and new government is that at least they must introduce a new tariff order for the MSME sector alone," said a leading industrialist from Kamakshipalya.
Peenya Industrial Area, one of the largest manufacturing hubs in Asia, is already reeling under severe losses. "A manufacturing unit which is paying a monthly power bill of Rs 1 lakh will end up paying an additional Rs 25,000 to Rs 30,000. As the demand soars, the consumption will also increase. But if we transfer the same burden on the end product, people will refrain from buying our products, leaving us with mounting losses. Already, the quality of power is disputable and power cuts are back. Over and above these, now the tariff revision will be a death blow to our sector," said Mallesh Gowda HK, secretary of Peenya Industries Association.