Industries in Andhra Pradesh have expressed concern over recent regulatory order with regards to restrictions and control measures (R&C) in the power sector and fuel surcharge collection.

The President of Federation of Andhra Pradesh Chamber of Commerce and Industries (FAPCCI), Devendra Surana, told Business Line the regulator has restricted the power allocation to 60 per cent of required capacity and use beyond this will be penalised.

The Fapcci has expressed its concern at the revised R&C measures issued on November 1 and effective from November 7. The new measures approved by the regulatory commission enforce steep penalty. This has been increased from 3 times to 6-7 times of power cost.

He said such penalty is prohibitive and is likely to have a major impact on the industry. Once the penalty is increased to 6-7 times, wilful misuse of the penal provisions will not take place and as such there should be no provision for disconnection.

Further, the R&C measures can only be effective when an option for expensive power is available to all consumers so that those who are in desperate need of power have an option.

The chamber said levy of fuel surcharge adjustment (FSA) for the first quarter of 2012 has been fixed at Rs.1.32 per unit. While it is acceptable to pass the increase in cost of power to consumers, it is not fair to pass on the cost of power used by other sectors of economy on to the industrial consumers.

>rishikumar.vundi@thehindu.co.in

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