The Recycle Textile Federation calls on Chief Minister M.K. Stalin to intervene and cancel the 4.83% power tariff hike implemented by TANGEDCO, citing its detrimental impact on MSMEs in Tamil Nadu.
Coimbatore: The Recycle Textile Federation has appealed to the Tamil Nadu government to revoke the recently implemented electricity tariff hike, expressing concerns over its potential to cripple Micro, Small, and Medium Enterprises (MSMEs) in the state.
M. Jayabal, President of the Recycle Textile Federation, urged Chief Minister M.K. Stalin to intervene and save the MSMEs by cancelling the increased charges. The plea comes in response to the Tamil Nadu Generation and Distribution Corporation (TANGEDCO)'s decision to raise power tariffs by 4.83% for domestic, commercial, and industrial users, effective from July 1.
In a press release, Jayabal highlighted the ongoing struggles of MSMEs in the state. He mentioned that despite previous peaceful protests against earlier tariff hikes, which provided some temporary relief, the government had not cancelled the 433% increase in demand charges. This has resulted in a monthly fixed payment of Rs. 17,136 for businesses, regardless of their operational status.
The federation expressed disappointment over the timing of the announcement, particularly in light of recent political developments. Jayabal stated, "Prior to the Lok Sabha Polls 2024, ministers-in-charge assured us that MSME requests would be considered after the election. With the ruling party's success in the polls, we expected favorable announcements, not this tariff hike."
The impact of the increased power tariff is expected to be significant, affecting 3.36 lakh LTCT consumers and 2,600 companies in the manufacturing sector that use HT connections. The federation fears this move will further strain the already challenged MSME sector in Tamil Nadu.
In addition to cancelling the fixed charges, the Recycle Textile Federation has requested the state government to waive networking charges for industries installing rooftop solar energy panels. They argue that such support is necessary for Tamil Nadu's MSMEs to compete fairly with those in other states that receive various subsidies from their respective governments.
Jayabal warned that if the government fails to address these demands, MSMEs may be compelled to organize protests once again. The federation emphasizes the critical role of government support in ensuring the survival and competitiveness of the MSME sector in Tamil Nadu.
M. Jayabal, President of the Recycle Textile Federation, urged Chief Minister M.K. Stalin to intervene and save the MSMEs by cancelling the increased charges. The plea comes in response to the Tamil Nadu Generation and Distribution Corporation (TANGEDCO)'s decision to raise power tariffs by 4.83% for domestic, commercial, and industrial users, effective from July 1.
In a press release, Jayabal highlighted the ongoing struggles of MSMEs in the state. He mentioned that despite previous peaceful protests against earlier tariff hikes, which provided some temporary relief, the government had not cancelled the 433% increase in demand charges. This has resulted in a monthly fixed payment of Rs. 17,136 for businesses, regardless of their operational status.
The federation expressed disappointment over the timing of the announcement, particularly in light of recent political developments. Jayabal stated, "Prior to the Lok Sabha Polls 2024, ministers-in-charge assured us that MSME requests would be considered after the election. With the ruling party's success in the polls, we expected favorable announcements, not this tariff hike."
The impact of the increased power tariff is expected to be significant, affecting 3.36 lakh LTCT consumers and 2,600 companies in the manufacturing sector that use HT connections. The federation fears this move will further strain the already challenged MSME sector in Tamil Nadu.
In addition to cancelling the fixed charges, the Recycle Textile Federation has requested the state government to waive networking charges for industries installing rooftop solar energy panels. They argue that such support is necessary for Tamil Nadu's MSMEs to compete fairly with those in other states that receive various subsidies from their respective governments.
Jayabal warned that if the government fails to address these demands, MSMEs may be compelled to organize protests once again. The federation emphasizes the critical role of government support in ensuring the survival and competitiveness of the MSME sector in Tamil Nadu.