Power tariff sops to industry operating at night withdrawn

CHANDIGARH: The industry in Punjab is up in arms against the state government for withdrawal of ‘Time Of Day Tariff’ facility to large supply and medium supply industry, which allowed them to get power at subsidised rates during night hours.

Ruchika M. Khanna

Tribune News Service

Chandigarh, April 1

The industry in Punjab is up in arms against the state government for withdrawal of ‘Time Of Day Tariff’ facility to large supply and medium supply industry, which allowed them to get power at subsidised rates during night hours.

The Punjab State Electricity Regulatory Commission (PSERC), in its order issued yesterday, had withdrawn this facility, which allowed the industry to operate at night (between 10 pm to 6 am) by paying Rs1.5 per unit less than the tariff charged from industrial consumers during day time.

The tariff charged from industrial consumers varies between Rs7.25 per unit to Rs7.50 per unit, and the industry operating at night was being charged from Rs5.55 per unit to Rs5.80 per unit (Rs1.5 rebate on tariff and 13% electricity duty rebate on Rs1.5).

The government had introduced this industry-friendly policy of asking industry to operate at night in October 2013. At that time, the policy was introduced till March 2014, and later extended from April-May 2014. After a break of four months, the time of day tariff for running of industry at night on subsidised tariff, was reintroduced in October 2014. However, yesterday’s order by PSERC has withdrawn this facility, now forcing the industry to revert to operating during day time and pay the peak load industrial power tariff.

Since power is a major input cost for the manufacturing sector, a large number of industrial units in the state, mainly steel rolling mills, induction furnaces, and textile units, started operating at night, thus saving on their input costs.

Mahinder Pal Gupta, president of Induction Furnace Association, Mandi Gobindgarh, said it was a retrograde step for the industry. “Already, steel units are closing down in Mandi Gobindgarh and textile industry is shifting to other states. Instead of trying to stem the flight of existing industry by incentivising them, the government has chosen to withdraw an incentive,” he rued.

RS Sachdeva, co-chairman of the Punjab committee of PHD Chamber, said power tariff, especially for industrial consumers, was amongst the highest in the region. “But the state government seems to be penalising us by withdrawing the facility of subsidised tariff,” he said.