KCCI Submits a Memorandum to CM Not to Increase Power Tariff

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KCCI Submits a Memorandum to CM Not to Increase Power Tariff

Mangaluru: Kanara Chamber of Commerce & Industry (KCCI) has opposed the recent Power tariff increase decision by the Karnataka Electricity Regulatory Commission (KERC). In a memorandum submitted to the Hon’ble Chief Minister, Shri Basavaraj Bommai and Minister for Power, Shri V. Sunil Kumar, KCCI said that the MSME sector will completely collapse if the power tariff is hiked again. This is the third time this year that the KERC has hiked electricity charges. In April, it hiked 35 paise per unit on average and 25-30 paise per unit in June.

KCCI also welcomed the recent announcement by the Power Minister who understood the plight of MSMEs and promised to consider the reversal of the tariff hike. Following is the letter/memorandum submitted to Chief Minister Basavaraj Bommai, requesting him not to increase the Power Tariff

Shri Basavaraj Bommai,
Hon’ble Chief Minister,
Govt. of Karnataka
Bengaluru – 560 001

Respected Sir,

Sub: Request not to increase power tariff as FAC

We bring it to your kind notice towards the shocking decision of Karnataka Electricity Regulatory Commission (KERC) proposing to increase power tariff towards the Fuel Cost Adjustment Charges (FAC) by 43 paise per unit across all ESCOMs w.e.f 1st October 2022. In this connection we submit the following:

1. MSME sector in India is the second largest employment generator after agriculture, and acts as a breeding ground for entrepreneurs and innovators with considerable support in strengthening the business ecosystem. MSME sector contributed 29% to overall GDP.

2. With the Covid 19 pandemic and Lockdowns impacting their cash cycles, MSMEs, who are the backbone of India’s inclusive growth story, have felt a significant impact and faced severe disruptions. As an important part of the domestic and global value chains, the plight of MSMEs is of deep concern.

3. Post Lockdown MSME is facing challenges related to debt repayments, wages/salaries, statutory dues, etc.

4.It is not only the MSME units which face challenges; even consumers are left with lower disposable income. Many enterprises laid-off their workers because of inability to pay salaries, vacated their offices due to incurring expenses and halted their production due to lack of demand

We wish to inform you that the MSME sector will completely collapse if the power tariff is hiked again. This is the third time this year that the KERC has hiked electricity charges. In April, it hiked 35 paise per unit on average and 25-30 paise per unit in June.

We therefore request you to kindly reject the KERC proposal to increase power tariff again and save the small scale industries from collapse.

With best regards.

Yours faithfully,

For KANARA CHAMBER OF COMMERCE & INDUSTRY

M. GANESH KAMATH
DIRECTOR / PRESIDENT

Note: A similar memorandum was sent to Sunil Kumar -State Minister for Power & Energy


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