The Confederation of Indian Industry, Andhra Pradesh, expressed concern over the 20-25 per cent hike of power charges for commercial and industrial consumers in the State.
Ms Suchitra Ella, Chairperson, CII, Andhra Pradesh, in a statement said the increase in power tariff for industrial consumers from present level of Rs 4.13 to Rs 5 a unit will lead to increase in the cost of production.
The Government justified the power tariff hike by citing increasing power revenue deficit. However, Ms Ella felt the Government could have reduced power subsidies and resorted to better expenditure management methods, instead of hiking tariff rates.
Greater burden
The industry is unable to meet minimum production demands due to frequent power cuts and power holidays, the hike will further lead to greater burden on the industry, she said.
Ms Ella said the timing of the proposed power hike for the industry will send wrong signals for the industry and prospective investors.