The Karnataka Small Scale Industries Association (KASSIA) warned that its members would shut down the industry if the recently announced rise in the price of electricity by ₹2.89 per unit is not reversed.

The reports of the hike in power tariff for June have sent shockwaves among the industry fraternity, especially the micro and small-scale industries of Karnataka, said KASSIA, expressing its displeasure about the extent of the hike. “We understand that the abnormal hike is on account of the arrears of 70 paise pertaining to April, the approved hike of 70 paise as per tariff order May 12, and the fuel and purchase cost adjustment (FPPCA) fee of January, but this should have been staggered in a way to mitigate the burden on the industry,” noted KN Narasimha Murthy, president, KASSIA.

Grievances not heard

The association has been constantly urging the government to defer all such hikes that hurt the industry till normalcy is restored in the economy or for at least two years, but our voice is not being heard, the president added. “While we accept that this government needs time to settle down before taking any major decisions, such major issues concerning the very survival of industry should have been taken with a little more sensitivity towards our grievances and situation.”

Furthermore, KASSIA also pointed out that while it was not against the freebies announced by the government for the citizens, this should not come at the cost of the industry, which is already bearing the burden of the State, and “if their back is broken, there will be dark days ahead”.

Related Topics
comment COMMENT NOW