Trade bodies and industries from across the State have threatened to go on strike and stop all production activities if their power tariff-related grievances are not solved. While some industries have demanded a complete rollback of the hike, the others have placed several demands before the government, which include the reduction of electricity taxes from 9% to 3% as well as hassle free 50 paise concession on tariff for industries and Micro and Small Enterprises (MSME).
On Thursday, a meeting was held between Energy Minister K.J. George, other officials of the Energy Department, and the office-bearers of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI). Gopal Reddy, president, FKCCI, said the Minister assured them that the 50 paise per unit rebate for LT-5 consumers who possess Udyoga Mitra certificates would soon be provided.
“There is demand from districts is to rollback the tariff order. But after discussions, they have agreed to wait for a few days to give the government time to implement the 50 paise rebate. With Fuel Adjustment Costs (FAC) turning out to be a burden on industries, we have also asked the government to pay subsidy to the electricity supply companies (Escoms) for FAC. If our demands are not met in about two days, then we will resort to protests,” Mr. Reddy said.
Karnataka State Small Scale Industries Association (KASSIA) has said that the tariff hike will in turn increase raw material prices and input costs and upset all calculations of a micro entrepreneur.
K.N. Narasimhamurthy, president, KASSIA, told The Hindu that the trade body would soon submit a representation to the Chief Minister, Minister in charge of power distribution, energy secretary, and DCs in all districts to press its members’ demand for a rollback of the hike. “We are going all out to fight this. We will give a 10-day notice to the State government, and then a State-wide indefinite strike,’‘ Mr. Narasimhamurthy said.
Bengaluru-based industrial associations have also decided to hold demonstrations. The Peenya Industries Association (PIA) already held a brief protest. PIA members said that Mahantesh Bilagi, MD, Bescom, met them with assurances of working out mutually beneficial ways to avoid burden on industries. “He came to meet us and said that a middle ground would be worked out in two days. Otherwise, 12 lakh workers from 16,000 industries will take to the streets against the tariff hike,” said H. Manjunath, president, PIA.
The Machohalli Small Scale Industries Association has requested the police for a demonstration at Freedom Park in the next few days. “The government should file a review petition before KERC to revise the tariff order or if necessary, move the High Court against this arbitrary increase in tariff. We were not even aware of this retrospective collection to prepare for it. The workers from 400 industries will stage a dharna,” said Suresh. N. Sagar, vice-president of the association.
A senior official from the Energy Department said: “The industries and trade bodies have reached out to us and maybe their fears are genuine. However, they should keep in mind that the tariff here is lower than in our neighbouring States. It might be a little disturbing this month because of the arrears, but in the subsequent months, the tariff will be moderated.”
