Wednesday, January 30, 2013

Meeting with PCC President on power shortage in the State and higher FSA charges

Mr. Devendra Surana, President, FAPCCI and Mr. M. V. Rajeshwara Rao, Secretary General called on Mr. Botcha Satyanarayana, President, Pradesh Congress Committee and Hon’ble Minister for Transport, Government of Andhra Pradesh, regarding the power shortage in the State and higher FSA charges and tariff prevailing in the State.  

The Minister appreciated the problems faced by the industry due to shortage of power and higher FSA and tariff, which have double-edged effect of debilitating the health of the industry.  It was informed to him that there is an immediate need to increase the generation and distribution of power in the State so that agriculture, industry and the service sectors will come out of the slow-down and pick up the momentum for the overall development of the economy of the State as well as to increase the job opportunities for the youth of the State, which is the primary focus and objective of the government.  

The Hon’ble Minister was also briefed about the recent ARR filings made by DISCOMs in which they proposed steep increase of tariff.  The increase is due to higher cross subsidy proposed to be levied on industrial consumers.  It was bought to the notice of the Minister that as per National Tariff Policy, the cross subsidy should not be more than 20%.  With cross subsidy, the proposed tariff for the industrial consumers is 160 per cent of average cost of service.  Thus cross subsidy is higher by 40 per cent and the burden on industry is exorbitant and industry will become gradually weak and its growth will be progressively stunted and with it the job opportunities to the youth of the State will decline causing frustration to the Youth.

The Hon’ble Minister appreciated this point and felt happy that this aspect was brought to his notice so that he may do his best to rationalize the tariff in a way that industry and common man will feel happy.

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