Businesses seek reduction in power tariff

Rajahmundry: Industrial progress in East Godavari has seen a  setback in the last couple of years due to power crisis, particularly during the summer.

According to sources, entrepreneurs are hesitating to start any industry  fearing  a repetition of the power crisis in the coming summer.

However,  according to  available details,  the sector under  micro, small and medium enterprises (MSME) has received response for  281 units with investments  of Rs 177 crore in the district across the 58 mandals.

These units have employment potential to the tune of 3,356. Among the units cleared are ice plants, coir units. boiled rice and shrimp hatcheries and are in various stages of completion. 

As far as  medium and large industrial sectors are concerned,  the power tariff has been hiked from Rs 3.40 to Rs 6 and a  proposed hike to  Rs 11 is in the pipeline. Charges for KVA, 33 KVA and 132 KVA are likely to be hiked  from the present Rs 350 per KVA (which was earlier Rs 250) to Rs 600, and may be a major setback for the large and medium units in setting up units in East Godavari in general and in AP in particular. Soaring power tariff is said to be reflecting on both the price of the cost of production as also on the commodity produced.

AP Recycled Paper Mills EC member and MD of Sri Ramadas Paper Boards at Kadiam in Rajahmundry suburbs, Nallamilli Venkata Reddy blamed  inadequate power supply, higher charges and  frequent changes in power tariff  for the dissatisfaction among entrepreneurs.

Several entrepreneurs  upset  with the power tariff and  erratic power supply hail the decision of New Delhi Chief Minister Arvind Kejriwal to reduce the power tariff at least for the domestic sector. They  are hoping for  such a phenomenon in the AP  power sector too.