FKCCI chief says 40 paise/unit hike will impact input costs for industry
BENGALURU:
Karnataka’s premier industry body, Federation of Karnataka Chambers of Commerce & Industry (FKCCI), has expressed dismay over the proposed hike in power tariffs, which comes into effect from November 1.
FKCCI president Perikal M Sundar, in a press statement, said the increase of 40 paise per unit with respect to BESCOM would burden all categories of consumers, especially in the current pandemic situation. Besides, the tariff hike would reflect on the price of raw materials like iron, steel, forgings and castings for all industries, including MSMEs. The government’s investment-friendly industry policy and other reforms to attact investment and generate employment would go in vain because of the hike, he said.
Pointing to the closure of many units and other units operating at 40-60 per cent capacity, Sundar said FKCCI had made a representation to the government as well as to KERC not to hike the power tariff for the next three years. He demanded that the hike be withdrawn or else factories would have to shut shop.
‘Give us surplus power’
Noting that Karnataka’s escoms are selling surplus power to other states, the FKCCI chief said that if the same could be provided to factories in Karnataka, it would boost the economy of the state.
The power tariff hike did not augur well for the objectives of the state’s Industry Policy 2020-25 to generate investment worth of Rs 5 lakh crore, provide employment opportunities to 20 lakh people, reach the 3rd position nationally in merchandise exports in the next 5 years, and maintain the industrial growth rate of 10% per annum, Sundar pointed out.
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