COIMBATORE: Industrial organisations in Coimbatore and Tiruppur districts have strongly opposed the power tariff hike, saying that industries in Tamil Nadu are already facing a recession-like situation and the hike would sound the death knell for the industries.
The Federation of Coimbatore Industrial Association (FOCIA), a common body for 23 industrial associations, said the power tariff hike would destroy micro and small-scale industries in Tamil Nadu.
“After the fixed charge was hiked from `35 per kilowatt to `150 (430%) and 20% increase in power tariff in 2022, over 420 industrial organisations in Tamil Nadu joined hands and conducted a series of protests demanding reduction in tariff. Chief Minister M K Stalin had then promised to take steps to reduce the tariff after the parliamentary elections, but the Tangedco has again increased the tariff by 4.83%,” coordinator of FOCIA J James said.
“In Tamil Nadu, 97% of micro and small industries do job-work and 8% of these units are involved in manufacturing spare parts for bigger companies for a small profit. The increase in power tariff puts a heavy burden on these micro and small industries that provide employment opportunity for local youth,” he added.
A release from SK Sundararaman, chairman of Southern India Mills’ Association (SIMA), said the Consumer Price Index (CPI)-based power tariff revision will curtail Tamil Nadu’s competitiveness in the textile industry sector.
Open End Spinning Mills Association (OSMA) president G Arulmozhi said, “The increased tariff would mean an additional expense of at least `2,500 per month for each MSME unit. It will make MSMEs in TN uncompetitive compared to other states.” B Kandavel, organising secretary, Tamil Nadu Federation of Powerloom Associations, in a letter to the CM, said “The new power tariff revision has come at a time when we are pressing for the earlier hike to be revoked.
This has shocked us. Job orders for power looms are already down. The price of manufactured fabric has dropped. The power loom industry is in a crisis. The CM should consider all this and exempt power looms from the tariff hike.”
CM’s intervention sought
Chennai: Industrial estates along with MSME associations held a meeting on Tuesday and vowed to flag the issue with CM MK Stalin and MSME Minister T M Anbarasan. “The fixed charges were increased three years ago and we have been continuously opposing it. Currently, the fixed charges have been increased by Rs 4 up to 50 kw, Rs 7 up to 112 kw and Rs 27 above 112 kw,” said Tamil Nadu Small and Tiny Industries Association president C K Mohan. During the last three years, fixed charges have increased from Rs 35 to Rs 75 up to 50 kw and Rs 35 to Rs 155 up to 112kw and from Rs 35 to Rs 350 beyond 112kw, he added.