The Hindu Business Line : Binani Ind employees seek power tariff cut

THE employees of Binani Industries Ltd, Kochi, have appealed to the State Electricity Regulatory Commission to either reduce the power tariff for the company or allow it to import power from the Power Trading Corporation.

The employees have pointed out that the management of the company, which is facing closure on account of the losses incurred due to high cost of power, had approached the commission a couple of months ago to decide on a reasonable wheeling charge to bring power from other states.

But, in the face of opposition from the State Electricity Board, the commission has been delaying a decision in this respect. This is in contravention of the Electricity Act, 2003, which has clearly spelt out the norms for import of power, say the employees.

It has been pointed out that the company, which is the second largest consumer of power in the State, was set up in 1967 when Kerala was surplus in power and the tariffs were low. But because of the subsequent huge increase in tariff, the company has been running in loss over the last three years.

As of now, the company is paying Rs 3.40 per unit, whereas power is available from agencies such as PTC at Rs 2 per unit. The employees have appealed to SERC to either reduce the tariff by one rupee per unit or allow the company to import power from outside.

While the State Government is getting Rs 6 crore per month from the company by way of taxes, the electricity board is raking in Rs 4.5 crore per month as electricity charges. It being so, it is in the interest of the State that the company continues to be in operation.

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