Indore: Increase in electricity tariffs will hit Micro, Small and Medium Enterprises (MSME) as the move will up cost of production and kill competitiveness, industry association said.
Industries associations of the region have opposed hike in electricity tariff for the year 2017-18 and have submitted objections to the Madhya Pradesh Electricity Regulatory Commission (MPERC).
Association of Industries Madhya Pradesh (AIMP) has constituted a committee to protest the proposed hike in electricity.
President, Association of Industries Madhya Pradesh (AIMP) O P Dhoot said, “MSMEs will be badly hit by any rise in electricity tariff. Tariff of electricity is already high in Madhya Pradesh and any further rise in tariff will kill the already struggling MSME sector.”
Madhya Pradesh power distribution companies have proposed a hike in electricity tariff by 10 to 33 per cent for different sectors.
Industrialists said that the hike in electricity rates will increase the cost of production of industries making operations difficult from the region. The committee formulated by the AIMP will protest against the hike and will register their objections to the department in coming weeks.
Pithampur Industries association has also opposed Audhyogik Kendra Vikas Nigam’s (AKVN) proposed 33 per cent hike in electricity tariff for the financial year 2017-18 for industries located in the Special Economic Zone (SEZ). Industry association has claimed that increased tariff will kill the competitiveness of the industries operating from SEZ and hamper exports from the region.
President, Pithampur Audhyogik Sangathan Gautam Kothari said, “Industries in SEZ have to pay local taxes such as property tax as against the provision of the SEZ. In addition to this increased rates of tariff will reduce exports from the region and operations of the industries.”
Source: ET Energy World
