The Hindu Business Line : FKCCI against differential electricity tariff

THE Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has opposed the differential retail tariff as suggested by the electricity supply companies (Escoms). The suggestion made by them to the Karnataka Electricity Regulatory Commission (KERC) was untenable, as the consumers could not be burdened with the `inefficiency cost' of the Escoms.

The Government should make a realistic assessment of the cost centres to ensure that they become revenue centres and the electricity supply companies must take adequate steps to plug the loopholes in consumption and eliminate corruption, Mr S. Babu, President of FKCCI, said.

Pleading for the retention of the uniform power tariff regime, Mr Babu said differential rates would result in the closure of a large number of units in the areas where there is a higher tariff, especially in the rural areas.

"We have strongly opposed the move of the introduction of differential retail tariff in the recent KERC meeting. We demand that there shall be a uniform tariff throughout the State as far as electric power is concerned and the operational parameters of the various supply companies in the State may be toned up."

With increasing demand for power, investments should increase on new projects, Mr Babu said, adding thermal power plants of large capacity should be set up by the National Thermal Power Corporation in the State.

On infrastructure, the FKCCI President said there is an urgent need to improve the facility to attract FDI in the State.

The chamber has mooted an exclusive EXIM Club to facilitate the trade to get all information on imports and exports so that Karnataka could further consolidate its leading edge.

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