The Confederation Of Indian Industry has expressed concern over the 20 to 25 per cent hike in power charges for commercial and industrial consumers.
In a statement, CII's Andhra Pradesh chairperson Suchitra Ella said that the increase in power tariff for industrial consumers from the present level of Rs. 4.13 per unit to Rs. 5.00 per unit would lead to an increase in the cost of production.
The government has justified the power tariff hike by citing the increasing power revenue deficit, but it could have reduced the power subsidies and resorted to better expenditure management methods, instead of hiking the power tariff rates, Ella said.
The industry is unable to meet the minimum production demands due to frequent power cuts and power holidays, and the hike in the power tariff will further lead to greater burden for the industry, said the CII AP chairperson.
Ella is also of the view that the timing of the proposed power hike for the industry will send wrong signals to the industry and prospective investors, especially at a time when the industry is in a recovery mode from the negative impact of the global economic crisis. (INN)