Chandigarh: The Punjab industry on Monday opposed the 12 percent hike in power tariff saying 'huge jump' in power rates would lead it to turn "more uncompetitive" against industries in other states like Madhya Pradesh, Himachal Pradesh.

"The hike in power tariff will certainly put the local textile industry into a disadvantageous position vis-à-vis other states like Madhya Pradesh as our industry will become more uncompetitive now," Textile major SEL Manufacturing, Executive Director, V K Goyal told on Monday.

According to industry representatives, rising input cost caused by increase in electricity charges and land cost would 'force' the industry to expand in other states where the cost of production is much lower than what costs here.

"Definitely, we cannot work in industrialist will put his money where the cost of production is investments may flow to other states because of rising input cost," said a Ludhiana-based industrialist who didn't want to be named.

Power is about 20 percent cheaper in Madhya Pradesh compared to in Punjab, he rued. Major Ludhiana based textile groups like Vardhman, Nahar, Trident, SEL have already expanded their industrial capacities in Madhya Pradesh.

Punjab State Electricity Regulatory Commission on Monday announced an average hike of 12.08 percent in power tariff on all categories of consumers for 2012-13 and 10 paise per unit has also been levied for the first time on continuous process industry including textile, spinning, casting which will be applicable from November 1 this year.
The maximum dverse impact of increase in power rates is going to be visible on iron and steel producing units like furnace and rolling mills and textile, spinning units.

According to steel producing units, there will be a hike of Rs 500 per metric tonne in rates of steel products rates including ingot because of raise of 12 percent in energy rates.


Latest News from Punjab News Desk