BENGALURU: The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has urged the state government to defer its power hike move till normalcy returns in the economy. FKCCI president BV Gopal Reddy stated in a release that the hike in power tariff has distressed the industry and trade sector in Karnataka, which are reeling under a range of challenges amidst local and global factors that are beyond their control.
Further, Reddy said that the power bill for the current month being higher by Rs 2.89 per unit, has come as a dampener as it will increase the prices of products and services and reduce their profit margin. He said feedback from their members and industrialists reveals that some of the most vulnerable segments, such as micro and small-scale industries and small traders, are finding it difficult even to survive due to high input costs. “If recurring costs like power go up, they may even be forced to shut their unit or shop,” he said.
He added that those operating in the neighbourhood of other states may even explore possibilities of shifting to the other states where such costs are lesser. “We therefore appeal to the government to first talk to representatives of industry and trade, understand their situation and only then consider such issues of tariff revision,” he added. Reddy also said the industry and trade sector are not against the five welfare measures of the government as promised to the people.
FKCCI has cautioned that the increase in fiscal expenditure should not be at the cost of the industry, which was only managing to sustain itself. “Any additional burden on the industry will end up as a tipping point for it to take hard measures like shutting shop, shifting operations to other states or reduce intake of labour, thus fuelling unemployment,” the statement said.