Tamil Nadu Electricity Board's continuous tariff hikes are crippling small industries. The latest 4.83 Percentage increase adds to the burden, prompting industry associations to demand immediate rollback and relief measures.
Coimbatore: The Tamil Nadu Electricity Board (TNEB) has once again raised electricity tariffs, dealing a severe blow to the state's micro and small industries. This move has sparked outrage among industry associations, who claim that the continuous tariff hikes are systematically crippling and destroying small businesses across Tamil Nadu.
In 2022, TNEB had increased the fixed charges from Rs. 35 per kilowatt to Rs. 150 per kilowatt, marking a staggering 430% hike. Additionally, the unit consumption charges were raised by 20%. Unable to bear this burden, 420 industry associations in Tamil Nadu united to conduct eight phases of protests demanding a reduction in electricity charges.
While the Chief Minister of Tamil Nadu had promised to take steps to reduce the fixed charges after the parliamentary elections, the Electricity Board has now announced a further 4.83% increase in electricity tariffs. This move has been likened to "rubbing salt in the wound" by industry representatives.
The situation is particularly dire for Tamil Nadu's micro and small industries, with 97% of them operating as job order units and spare parts manufacturers. These businesses are already struggling with profit margins below 8% and inconsistent orders. The additional burden of rising electricity costs threatens their very existence.
Industry associations are expressing deep concern that this continuous increase in electricity tariffs will lead to the destruction of micro and small industries in Tamil Nadu's interior districts and local areas, which are significant providers of employment. They warn that thousands of workers are at risk of losing their jobs due to these measures.
In light of this crisis, industry representatives are urgently appealing to the Chief Minister of Tamil Nadu to take immediate action to protect the state's micro and small industries. Their demands include an immediate rollback of the recent tariff hike and a reversal of the 430% increase in fixed charges implemented earlier.
In 2022, TNEB had increased the fixed charges from Rs. 35 per kilowatt to Rs. 150 per kilowatt, marking a staggering 430% hike. Additionally, the unit consumption charges were raised by 20%. Unable to bear this burden, 420 industry associations in Tamil Nadu united to conduct eight phases of protests demanding a reduction in electricity charges.
While the Chief Minister of Tamil Nadu had promised to take steps to reduce the fixed charges after the parliamentary elections, the Electricity Board has now announced a further 4.83% increase in electricity tariffs. This move has been likened to "rubbing salt in the wound" by industry representatives.
The situation is particularly dire for Tamil Nadu's micro and small industries, with 97% of them operating as job order units and spare parts manufacturers. These businesses are already struggling with profit margins below 8% and inconsistent orders. The additional burden of rising electricity costs threatens their very existence.
Industry associations are expressing deep concern that this continuous increase in electricity tariffs will lead to the destruction of micro and small industries in Tamil Nadu's interior districts and local areas, which are significant providers of employment. They warn that thousands of workers are at risk of losing their jobs due to these measures.
In light of this crisis, industry representatives are urgently appealing to the Chief Minister of Tamil Nadu to take immediate action to protect the state's micro and small industries. Their demands include an immediate rollback of the recent tariff hike and a reversal of the 430% increase in fixed charges implemented earlier.