Industry opposes power tariff hike plan
Umesh Dewan/TNS

Patiala, February 9
The proposal of the Punjab State Power Corporation Limited (PSPCL) for a 55 per cent hike in the power tariff in its Annual Revenue Requirement (ARR) report for the fiscal year 2012-13, has come under sharp criticism from industrialists of the Punjab. Opposing the proposed tariff hike, a majority of the industrialists asserted that the industry "is already burdened with heavy tax structure and further power tariff hike will prove fatal for the industry, which is already passing through a rough financial phase".

Notably, in its AAR submitted to the Punjab State Electricity Regulatory Commission (PSERC), the PSPCL has put the proposed revenue for 2012-13 at Rs 16,310 crore, whereas the total revenue requirement has been shown Rs 20,415 crore. In order to bridge the revenue gap, the power utility had submitted the ARR to the PSERC, demanding a power tariff hike of 55 per cent for the fiscal year 2012-13.

Speaking to The Tribune, general secretary of the Chamber of Industrial and Commercial Undertakings (CICU) Avtar Singh claimed that in the ARR, the Power Corporation had "inflated" certain figures pertaining to the proposed power purchase for 2012-13.

Avtar claimed that the corporation had "failed miserably" to bring down the T&D loses. "Furthermore, during the bifurcation of the erstwhile PSEB in April 2010, the new power body was instructed to bring down the expenses on the staff, but to no avail. In order to cover up its complete failure in managing the financial matters, the power utility has proposed a 55 per cent power tariff hike," he said.

In an equally vocal manner against the proposal, president of the Federation of Punjab Small Industries Association Badish Jindal said public hearing for objections on the ARR were presently in process in the state and he had already submitted the objections with respect to the ARR to the regulator. Terming the proposed hike as a "cruel joke" with the industrialists, Jindal said instead of taking steps to prevent the migration of industry to other states, the power corporation was making proposals that were bound to further deteriorate the fiscal health of the Punjab industry.

Meanwhile, many industrialists have alleged that even the process of public hearings is being deliberately not publicised properly with an objective to ensure minimal presence of industrialists at the hearings.