The industry is already paying several taxes and levies to the government and burdening the industry further with higher price hikes in power is not warranted. In addition, this tariff increase is coming up against the background of increase of 2% in Service Tax and Excise Duty, property tax, VAT increases, which will increase the prices of the goods and services. The industry has been suffering 40 to 60% power cuts when the power shortage is 10 to 15%. The disproportionately high power tariff being levied on industry is not a step in the right direction and will only escalate the price-line and the inflation and cause slowdown in the economy.
FAPCCI, therefore, contend that the hefty increase in power tariff to industry and trade is not only counterproductive but also harsh on the industry and economic growth. The APERC should have taken all these points into consideration before it approved the tariff proposals of DISCOMS and should have fixed tariff based on the principles of natural justice, economic considerations and in the spirit of a regulatory commission.V S Raju