CICU demands Immediate roll back of hike in power connection charges

Ludhiana, October 1, 2012: The latest decision of the Punjab State Electricity Regulatory Commission and Punjab State Power Corporation to hike Power Connection charges for industrial, farming and domestic consumers with effect from today is vehemently been opposed by Avtar Singh General Secretary Chamber of Industrial and Commercial Undertakings (CICU).

He reminded for the series of hikes in power tariff from 55-58 paise per unit for industrial consumers and 53-58 per unit for domestic consumers w.e.f. 01/04/2012 announced on 16/07/2012 and recently, fuel surcharge of 10 paise per unit announced on 25/09/2012 w.e.f. 01/09/2012. These hikes are greatly affecting the already reeling MSMEs in this adverse economic scenario.         

He said on the one hand PSPCL has not been able to give uninterrupted Power Supply to the industry for the last 4-5 years and on the other hand the Punjab Govt. firstly increased the Electricity Duty from 10% to 13%, then imposed entry tax of 12.5% on diesel generating sets, further imposed 5% Electricity Duty from captive consumption from any source and the power tariff is being hiked almost every year by PSPCL.

Adding, he said with all these taxes, charges and duties in place, it is beyond imagination how the industry in Punjab will survive and compete in the national and international market. All the policies framed by the P.S.P.C.L. are anti industry and the industrialists of Punjab are being supplied power at exorbitant rate as compared with all other Northern States. One cannot hope that any new industry will come up in the State due to repeated hike in power tariff, connection charges and the imposition of various taxes and duties every now & then.

Meanwhile, Upkar Singh, Joint Secretary, CICU, has slammed the increase in connection charges which will prove a deterrent for setting new industries in the state. He said that for getting a new large supply industrial connection, an applicant will now have to shell out Rs.1200 per KVA for load upto 500 KVA from earlier charges of Rs.900 per KVA. For medium supply industrial category (20 KW – 100 KW) these has been revised to Rs.1900 per KW from Rs.900 per KW. Now for 2000 KW connection, new industrial unit will have to shell out Rs.42 lakhs from earlier Rs.20 lakhs.

He further said that this exorbitant increase in connection charges was the latest in the State’s anti industry decision. On the one hand, Punjab Government is exhorting industrialists to setup new units in the State and on the other hand it has announced a hike of 100-160% in new power connection charges. The Government is indeed forcing the industry to move out of Punjab.      

The CICU leaders requested and urged upon the Chairman, Punjab State Electricity Regulatory Commission and Chairman, Punjab State Power Corporation Limited to immediate roll back the hike in power connection charges effective from today onwards, so as to save the Punjab Industry from disaster and compulsion of shifting to other states having pro-industry policies.