The city-based industry has lambasted the state government for the “unprecedented” rise in power tariff and termed it against the interest of public and industry in particular.
Representatives of various industrial associations claimed that the increase in power tariff would leave the industry more uncompetitive at a stage when they were feeling the heat of adverse economic conditions.
Terming the hike a cruel blow to the industry, Dev Gupta, general secretary, Induction Furnace Association of North India, said the steel industry in Ludhiana had already reduced its production by half of its capacity, while the Mandi Gobindgarh-based industry had reduced its capacity by 40%, and the rise in power tariff would further hurt their interests.
He also questioned the relevance of announcing the new investment promotion policy after such a huge increase in power tariff.
Badish Jindal, president, Federation of Association of Small Industries of India, said the average increase in power had been shown as 8.61% from 532.09 paisa per unit to 577.75 paisa per unit, but the net impact on all sectors except agriculture sector was above 11%.
“The tariff for small power industry has been increased by 12.5% from 510 to 574 paisa, for medium power its 11.55% as its increased from 561to 626 paisa, and the worst hit is the large supply with an increase of 13% from 561 to 633 paisa,” he said, adding that it was a big burden on the industry. .
Ajit Lakra, president, Ludhiana Knitters Association, said rise in power tariff would only add to the problems of the state industry and would result in decreased production.
“Cost of production will increase due to it and leave the industry uncompetitive,” he said.