The Confederation of Indian Industry (CII) Andhra Pradesh today expressed concern over the proposed power tariff hike for the industry stating that the move will make them less competitive.
Suchitra K. Ella, Chairperson CII Andhra Pradesh, in a statement said, “The proposed hike is expected to have a burden of Rs 607 crore for small-scale industry and Rs 4,728 crore for large-scale industry annually.”
Power tariff hike for industries, would lead to increase in the cost of production, which will make industries in Andhra Pradesh less competitive compared with other States, she added.
The Government justified the power tariff hike by citing increasing power revenue deficit. However, Ms Ella felt that instead of hiking power tariff rates, the Government could have reduced power subsidies and resorted to better expenditure management methods.
The proposed tariff hike comes at a time when the industry is already facing with several hardships such as imposition of Fuel Surcharge Adjustment and impact of global slowdown, she said.
In order to meet the increasing power requirement of the industry, the CII is partnering with the Andhra Pradesh Government on energy conservation measures for accelerating energy efficiency.
Meanwhile, the proposal to hike tariffs has come in for severe criticism by not just members of opposition political parties, but a section of the ruling party members who have come out openly said that the move will have adverse impact on the party while causing hardship to consumers.
Isolated incidents of people cordoning sub-stations in several parts of the State have been reported.