ANOTHER ELECTRIC SHOCK TO INDUSTRY IN U.P. - IIA

2-4-10

Another Electric Shock to Industry in U.P. - IIA

Indian Industries Association(IIA) held a discussion in its Head Office in Gomti Nagar today on the latest power tariff approved by UPERC on 31st March 2010.

Mr Anil Gupta,President,IIA, strongly feels that the hike in the power tariff for industries esp for LMV6 and HV2 sectors is totally uncalled for and unjustified. “As it is, industry is already paying much higher price for electricity than other categories of consumers and is also bearing the burden of cross subsidy of other categories. IIA representatives had requested UPERC to reduce the element of cross-subsidy as well as to eliminate the minimum charges but to no avail,” added Shri G.C.Chaturvedi,Former President,IIA.

“Industry in U.P. is already reeling under gross power shortage and in such a situation there is no justification for minimum charges when even the minimum power requirement of the industry is not ensured,” Shri Manish Goel,Vice President,IIA, expostulated during the discussion.

It may be noted that with the beginning of summer season, scheduled power cuts to industry has already been made applicable from 10 PM to 4 AM. Hence, on the one hand industry is subject to pay minimum charges and on the other hand it also has to pay the higher tariff ! “This scenario will restrict the competitiveness of U.P. industry thus pushing the state further towards economic backwardness,” rued Mr.Anil Gupta.

Shri G.C.Chaturvedi pointed out, “this irrational increase in power tariff will, in turn, result in the increase in the overall cost of production which is not in the interest of consumers at large.”

D.S.Verma
Executive Director