The Confederation of Indian Industry Andhra Pradesh today expressed concern over the increased power tariff hike for the industry and felt this will make the industry less competitive.
B. Ashok Reddy, Chairman, CII Andhra Pradesh, said yje Government imposed a power tariff hike at a time when the industrial growth in the State is adversely affected due to severe power cuts and impact of global slowdown.
The hike in power tariff will lead to increase in the cost of production and will have further adverse impact on the industrial growth in the State, he felt.
Negative impact
Reddy pointed out that in the last one year, shortage of power to the industry has a negative impact on the growth of manufacturing sector.
Instead of hiking the power tariff, the Government should have resorted to better expenditure management methods, he suggested.
Subsidy on power
CII urged the Government to release subsidy on power to discoms immediately which will improve the financial health of discoms.
rishikumar.vundi@thehindu.co.in