With lower power tariffs, Chhattisgarh, Madhya Pradesh attracting industries from Vidarbha
Nagpur: Maharashtra may have attracted some big-ticket investment proposals recently, but the State’s manufacturing sector continues to complain about high energy tariffs in the State blunting its competitive edge, according to a report in local Hindi newspaper Navbharat.
Today’s Rate
Wednesday 06 Nov. 2024
The report said that Vidarbha is paying the price for high power tariffs in Maharashtra as compared to neighbouring states of Chhattisgarh and Madhya Pradesh. The industrialists of Vidarbha are making an exodus to other states instead of expanding their industries in Maharashtra. And for this, the high power tariffs are the main contributing factor. The industrialists lamented that energy tariffs for industrial users in Maharashtra were higher than what is charged in Madhya Pradesh, Chhattisgarh, Goa, Gujarat, Karnataka, and Andhra Pradesh. “It is injustice to the industries in Vidarbha,” they stated.
In a bone of contention, the industrialists pointed out that most of the power is generated in Vidarbha. “Coal and water are ours. Pollution is faced by us. But still no relief is provided to us by way of lower power tariffs. Due to strong demand, the then Chief Minister Devendra Fadnavis had provided additional subsidy to industries in Vidarbha and Marathwada. Following this subsidy, a number of steel companies had also done expansion in the region while some companies increased their production. But the subsidy scheme was stopped abruptly. The scheme was not only discontinued but additional burden was thrust upon industries by imposing fuel adjustment charges in power tariffs,” the industrialists lamented.
The report further said that a look at the power tariffs of Chhattisgarh and Madhya Pradesh will show that energy tariffs in these states are cheaper by Rs 3 per unit in several parts of the States. These states also provide more relief to big industries. On the other hand, there is no such type of slab in Maharashtra. The states of Chhattisgarh and Madhya Pradesh have been attracting industries by fixing different power tariffs according to status of the industries, the report added.
“The leaders in Maharashtra have kept mum as the small as well as big industries in the state are suffering the brunt of higher power tariffs. Because of this reason, the industrialists have been reducing their production in the backward Vidarbha. The relatively cheaper power offered by Chhattisgarh and Madhya Pradesh give them a competitive edge,” the report stated.
According to the report and industrialist Praful Doshi, “The power tariffs in Chhattisgarh are lower from the beginning. Taking one one more step ahead, the state assured the steel companies to provide power at more concessional rates. On the other hand, some industries closed down one after another in Vidarbha and some shifted to Chhattisgarh. The industrialists of Vidarbha are being encouraged to make investments in Chhattisgarh and Madhya Pradesh. They directly blamed the higher power tariffs in Maharashtra. Due to more cost of production, the prices of the products rise and makes it very difficult to market their products. Due to the higher power tariffs, the rerolling mills are closing down in Vidarbha and Maharashtra and Raipur is becoming a hub,” asserted Praful Doshi.
The President of Vidarbha Industries Association (VIA) Vishal Agrawal said, “It is grave injustice to Vidarbha. A decision on power subsidy should be taken at the earliest. A big industry could be set up with an investment of Rs 1,300 crore. Instead of postponing such a decision, it should be resolved with priority. Today, we are just waiting and are forced to pay from our own pockets. This spoils the atmosphere and worsens the situation. It takes a lot of toil to bring one industry to Vidarbha. Moreover, indecision affected the investment tempo. We expect the powerful leaders of Vidarbha to ponder over this and come out with a solution,” Agrawal hoped.
The President of Steel Manufacturers Association of Maharashtra, Yogesh Mandhaniya, lamented that the State Government backed out of its promise. “This is injustice to Vidarbha and Marathwada. It is necessary to remove this injustice at the earliest. Industries are taking a hit. There is uncertainty over power bills. It is not possible for many industries to afford the hiked power tariffs. The steel sector industries, specifically, are suffering the brunt,” stated Mandhaniya.
Comparison of power tariffs in States:
11 KVA, 6 lakh units per month:
• Maharashtra – Rs 9.38 per unit
• Chhattisgarh – Rs 6.06 per unit (HT industries), Rs 5.28 per unit (Steel industries)
• Madhya Pradesh – Rs 6.82 per unit (Load factor above 50%)
• Telangana – Rs 9.59 per unit
11 KVA, 1 lakh units per month:
• Maharashtra – Rs 13.33 per unit
• Chhattisgarh — Rs 9.35 per unit (HT industries)
• Chhattisgarh – Rs 8.90 per unit (Steel industry)
• Madhya Pradesh – Rs 10.92 per unit (Load factor less than 50%)
• Telangana – Rs 13.55 per unit
33 KVA, 30 lakh units:
• Maharashtra – Rs 9.55 per unit
• Chhattisgarh (HT industry) – Rs 7.23 per unit
• Chhattisgarh (Steel industry) — – Rs 6.48 per unit
• Madhya Pradesh (Load factor above 50% — – Rs 7.11 per unit
• Telangana — – Rs 8.79 per unit
33 KVA, 5 lakh units:
• Maharashtra – Rs 13.33 per unit
• Chhattisgarh (HT industry) – Rs 8.95 per unit
• Chhattisgarh (Steel industry) – Rs 8.50 per unit
• Madhya Pradesh (Load factor less than 50%) – Rs 13.13 per unit
• Telangana – Rs 12.75 per unit
