The proposed increase in power tariff by the state government has received criticism from the city-based industry.
Industrialists claim that the industry was already facing tough times due to economic slowdown, and was therefore not in a position to bear any increase in power prices.
SC Ralhan, president, Ludhiana Hand Tools Association, said any increase in power tariff would further burden the industry, which was facing adverse market conditions.
“Due to market conditions, the industry has been forced to cut their input costs to check prices. The rise in power prices will put more burden on industry and leave it uncompetitive. The industry needs help to survive but such steps will only deteriorate its condition,” he said, adding that on account of increase in power tariff there would be increase in input cost, but the industry was not in a position to raise the prices.
Badish Jindal, president, Federation of Association of Small Industries of India, said the impact of rise in power tariff could be gauged from the fact that only 10% rise in power tariff would force the steel industry to increase their prices by Rs 500 per tonne, despite the fact that industry was not in a position to raise the prices.
“It will further decrease the share of city industry in production, which already has reduced production by almost 20%,” he said.
{{/usCountry}}“It will further decrease the share of city industry in production, which already has reduced production by almost 20%,” he said.
{{/usCountry}}Raj Kumar Singla, president, Fasteners' Suppliers' Association of India, said instead of providing any relief to the already ailing industry in city, government was putting more burden on it.