• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Kochi, July 28 The Confederation of Indian Industry has protested against the proposed 25 per cent power cut and the resultant increase in power cost, saying that it is a matter of serious concern for industries in Kerala.

The industry understands that poor monsoons had necessitated this action from the government.

“What we fail to understand is the move of the Kerala State Electricity Board in putting the entire hardship of monsoon failure on HT & EHT consumers who use only 25 per cent of generated/purchased power in Kerala,” Mr M.S.A. Kumar, Chairman, CII Kerala State Council, said.

Another serious concern, he said, is the matter of cross subsidy across user groups. Industrial consumers are already paying 130 to 150 per cent (depending on the type of industry and voltage) of the average cost of supply, whereas domestic consumers are paying 60-65 per cent of the average cost of supply.

Similarly, commercial consumers are paying approximately 230 per cent of the average cost of supply, whereas irrigation and dewatering consumers are paying only 30 per cent of the average cost of supply.

Power-intensive industries not only bear the burden of higher tariff (because of cross-subsidisation), but also pay almost double tariffs for consumption during peak hours.

The power cut and the resultant increase in power cost coming on top of the fuel price hike and already exorbitant labour costs will cripple power-intensive industries in Kerala, he said, adding that all user groups should share the burden in an equitable way.

Though the current crisis is due to monsoon failure, the failure on the part of the State Government to carry out the reform process in the electricity sector has impacted the State’s ability in addressing emergency situations.

Extreme dependence on hydro power, absence of planning and focus for energy efficiency and renewable energy is a matter of serious concern for the industry, he said.

Unbundling, proactive development of regulations, implementation of free and fair transmission and distribution and imposition of surcharge are essential for future growth and economic efficiencies. Reduction in cross-subsidy levels and tariff rationalisation in line with the National Tariff Policy is essential, as it would also help promote commercial and industrial developments in the State, Mr Kumar said.

CII will soon meet with the Power Minister and KSEB officials to present a white paper on the power situation in Kerala, with the industry’s recommendations on overcoming the tight situation in the short and long run, he said.

More Stories on : Power | Industry Associations | Kerala

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Meet today to decide on EPFO fund managers

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line