While the city industry was eagerly waiting for the announcement of a new investment promotion policy to boost industry, the increase in power tariff has dashed their hopes.
The power tariff rise continued to receive flak from city-based industrialists, who blamed state government for burdening them in times of crisis.
Avtar Singh, general secretary, Chamber for Industrial and Commercial Undertakings (CICU), on Thursday said increasing power tariff every year to give free electricity to farmers cannot be justified as micro, small and medium enterprises were also reeling under adverse economic scenario.
“On the one hand the Punjab State Power Corporation Limited (PSPCL) has not been able to give uninterrupted power supply to the industry for the last five years, while on the other electricity tariff is being increased by the state government almost every year, which is anti-industry,” he said.
He said the increase was uncalled for and would have a negative impact on the industry, as the cost of production would go up subsequently and leave the industry uncompetitive.
Singh said with this, the industry would be forced to raise the prices of products by 3-5%, while the steel industry would impose higher increase in prices.
Jasbir Singh Riat, chairman, GS Auto, said the industry was left with no other option than to increase the prices of products, adding that the auto parts manufacturing industry would be forced to raise the prices by 5-7% with this power tariff increase.