COIMBATORE: Industrialists, especially operators of small industrial units, have urged the Chief Minister to address electricity issues, particularly fixed power charges for industrial units.
J James, president of Tamil Nadu Association of Cottage and Micro Enterprises (TACT), “The increase in fixed power charges which was revised by the state government in September 2022 is high and affects MSMEs. Until then, industrial units paid Rs 35 as fixed charge for 112kw. It was increased to Rs 160 and due to the increase, an industrial unit should now pay Rs 17,920 as fixed power charge for a month. Earlier, it was only up to Rs 3,750.”
James added that apart from this, Tangedco has also increased power tariff from Rs 6.55 to Rs 8.50 per unit in the last two years. “Due to the increase in fixed power tariff and EB charges, small industries have been struggling to manage. Tangedco has also implemented a power fact system for industrial units and extended it now to industrial units operating below 18kw, from July 2024. After implementation of power fact, small units are penalised up to Rs 18,000 once in two months, citing electricity wastage,” he further said.
The president added that two years ago, the state government had announced changing 3B lines to 3A lines for smaller units using below 12 kw, but this announcement is yet to come into effect. “If it is implemented, small units can pay Rs 4.60/unit instead of up to Rs 8.15/unit and almost 58,000 industrial units will be benefited. Due to rising electricity prices, MSME units are struggling to get at least 8-10% margin from a job order. Therefore, most small operators shut their units,” he added.