Kanara Chamber of Commerce and Industry (KCCI) has urged the Karnataka Energy Department to enhance the maximum contract demand for LT (low tension) electricity lines in the State as mentioned by the government in the industrial policy for 2020-25.

In a letter to the State Energy Department Principal Secretary, Isaac Vas, KCCI president, said the maximum contract demand for LT electricity line consumers is 67 HP under the present regulation and that the maximum contract demand for LT consumers ranges from 100-150 HP in the neighbouring states.

Stating that the industry has to install a dedicated transformer to avail HT (high tension) electricity line, he said, “This not only adds to the cost for the micro, small and medium enterprises (MSMEs) but also adds to the cost of doing business. With this, the products manufactured become less competitive. This is an unnecessary burden imposed on MSMEs.”

Quoting the latest Industrial Policy of Karnataka for 2020-25, he said the government has committed to increasing the maximum contract demand for LT consumers from the present 67 HP to 100 HP.

The State government has taken various proactive steps to facilitate new small industries. Enhancing the limits for LT line to 100 HP would help set up new manufacturing facilities in the state as well as help in augmenting the capacity of the existing units, he added.

“We request you to notify the change in the official gazette. Your timely support in this matter in the hour of crisis would help various entrepreneurs to improve the productivity and employment opportunity in the state,” Vas said in the letter.

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