Power tariff hike in AP to hit industries hard, says CII

CII

The proposed power tariff hike in the state will lead to greater burden on consumers, including industrial units, Andhra Pradesh chapter of apex trade body CII today said.

Industries are already reeling under severe power shortage and the hike in charges will lead to even greater burden on them, Suchitra K Ella, Chairperson, CII AP chapter, said in a statement here.

"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," she said.

The hike would lead to increase in the cost of production of industries in Andhra Pradesh, making them less competitive compared to other states, she added.

The government has justified the hike by citing the increasing power revenue deficit. However, instead of hiking the rates, government could have reduced power subsidies and resorted to better expenditure management methods, Ella said.

The decision comes at a time when the industrial sector is already facing several hardships such as imposition of fuel surcharge adjustment (FSA) and impact of a global slowdown, she said.

According to her, the sector is unable to meet the minimum production demands due to frequent power cuts and two-three days' power holiday for industries.

The Andhra Pradesh government plans to raise power tariffs by an average 20 per cent from April 1.

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