Hyderabad: The recent proposals of the discoms that have been submitted to the AP State Electricity Regulatory Commission has sought a massive increase in power tariff and also fixed charges for supply to the industry.
As per discoms proposal, to be effective from April 1, 2014, the per unit rate is proposed to be hiked by 20 per cent while the fixed charges are proposed to be hike from 200 to 400 per cent.
The MSME sector, represented by Federation of Andhra Pradesh Small Industries Associations (FAPSIA), is opposing the proposal. It says that already many units in the MSME sector have become Non-Performing Assets and the sector will completely collapse if the power tariff is hiked. The association also demanded that the discoms reduce their distribution losses and overheads instead to putting additional burden on the consumers.
Proposed increase in fixed charges is Rs 50 to Rs 150 per KVA for LT category, which is a 200 per cent hike. For HT category it is proposed to be increased from Rs 350 to Rs 600 per KVA, which is a 80 per cent hike. For LT III B category, which is proposed to be merged with HT category, the hike proposed is from Rs 150 to Rs 600 per KVA, about 600 per cent hike.
“If the proposals are accepted by the APERC, the per unit cost for the MSMEs will come to Rs 12, which is very high. The MSMEs cannot bear the burden under the current industrial scenario.
As a result of political turmoil, power cuts, global recession and non availability of credit for the past two-and-a-half years, entrepreneurs are burdened with extra power bill of Rs 10,000 to Rs 30,000 per month.
If the new proposals are accepted, each entrepreneur will be burdened with an additional RS 30,000 to Rs 50,000 per month, in the power bills. The MSME sector simply cannot bear this and will collapse,” said J. Nageshwar Rao, FAPSIA president.
