HYDERABAD: A broad coalition of industrial, trade and commerce bodies, representing over 50,000 industrial units in Telangana, has urged the state government to revisit and recalibrate recent policy and regulatory measures, stating that abrupt decisions could stall investments, disrupt industrial operations and weaken the vision of ‘Telangana Rising’.
Speaking at a joint press conference organised by the Federation of Telangana Chambers of Commerce and Industry (FTCCI) on Wednesday, representatives of 10 industry associations raised concerns over GO Ms No 27 under the Hyderabad Industrial Lands Transformation Policy (HILTP), sharp power tariff shocks following the unblocking of lead kVArh billing, changes to Time-of-Day (ToD) tariffs, and delays in the Clean and Green Energy Policy.
The press meet was addressed by senior office-bearers of FTCCI and leading bodies such as the Telangana Industrialists Federation (TIF), Telangana Iron and Steel Manufacturers Association (TISMA), Cherlapally Industries Association (CIA), Federation of Telangana Small Industries Associations (FETSIA) and the Telangana State Solar Open Access Developers Association (TSOADA).
Industry leaders described the unblocking of lead kVArh billing as one of the most disruptive recent measures, stating that the sudden move by power distribution companies led to severe and unexpected electricity bill shocks for industrial and commercial consumers. Many units, particularly MSMEs, have reportedly received bills that are 100 to 300 per cent higher than usual.
Speaking to TNIE, TSOADA general secretary NNK Venkat said kVArh billing is intended to manage reactive energy drawn from the grid. However, under lead power factor conditions, consumers actually supply reactive power back into the system. Charging such consumers, he argued, is technically counterintuitive, as lead power factor operation supports grid voltage and stability. In several countries, such support is incentivised rather than penalised.
Terming the implementation punitive rather than corrective, the associations sought adequate transition time, technical guidance and awareness programmes. They also demanded the constitution of an expert committee comprising industry representatives, technical institutions such as IITs, NITs and JNTU, generators and DISCOMs to assess grid requirements and develop a phased roadmap.
The industry also called for a review of the ToD tariff structure, seeking restoration of the earlier night-time concession of `1.50 per unit or higher concessions during daytime hours. With DISCOMs procuring cheaper solar power during the day, they said the benefits of low-cost renewable energy must be shared fairly. Without meaningful incentives, ToD tariffs risk becoming a cost burden rather than a demand management tool.
Apprehensions were raised over Hyderabad Industrial Lands Transformation Policy. While acknowledging the need for urban planning, industry bodies said the policy lacked clarity on compensation, relocation support, timelines and the creation of alternative industrial ecosystems beyond the Outer Ring Road (ORR). Industries, they stressed, cannot be relocated like residential units and require three to five years of planning, infrastructure development and workforce alignment. They urged the government to keep the policy in abeyance and adopt a consultative approach.
FTCCI President R Ravi Kumar expressed concerns over provisions for “voluntary” land-use conversion, warning that rapid changes could leave factories surrounded by residential or commercial developments, leading to legal disputes and operational constraints. Many units, he noted, have operated in notified industrial areas for three to five decades. Relocation would take at least two to three years due to regulatory approvals, with significant financial losses from abandoned assets, he added.
‘Disruptive measure’
Industry leaders termed the unblocking of lead kVArh billing one of the most disruptive recent measures. They said the sudden move by power utilities triggered sharp and unexpected power bill shocks for industrial and commercial consumers, with many MSMEs seeing bills rise by 100–300 per cent.