‘MSEDCL’s proposed hike in power charges likely to kill 60,000 jobs in Vidarbha’

 

Consumers cutting across the line opposed the proposed hike in power charges and amendments in tariff structure saying that it will adversely affect them. While the small scale industries (SSI) of the region said the proposed hike would lead to shut down of over 30 per cent of the existing units, commercial category consumers highlighted that the amendments in solar panel installation would discourage the consumers to adopt the renewable energy source. Raising serious concerns about the economic fallout due to the proposed increase in power charges, a federation of SSI units of the region on Saturday said more than 30 per cent of the existing units would shut down in coming days. The federation also highlighted that the proposed power charges would kill nearly 60,000 jobs in Vidarbha. Addressing a press conference held at MIDC, Hingna, Milind Kanade, Secretary of the Federation of Industries Association - Vidarbha, said the proposed power tariff hike will have adverse effects on industries especially on the SSI units. The MIDC Industries

 

Association (MIA), in collaboration with the Federation of Industries Associations (FIA) and other industrial associations, highlighted the critical issues and potential impact of the proposed tariff hike by Maharashtra State Electricity Distribution Company Limited (MSEDCL) on the industries of Vidarbha. Kanade said, “We have filed a petition before the Maharashtra Electricity Regulatory Commission (MERC) highlighting the demand for power to SSIs at subsidised rates. Though the SSI units play a vital role in our industrial landscape, the entrepreneurs running these units are facing a lot of hardship on various fronts. The proposed hike in power rates will add to their woes and most of them would not be able to sustain it,’ he said. The federation demanded rationalisation of fixed and demand charges. Further, Kanade highlighted the need to improve ‘Grid Stability & Reliability’.

 

The power distribution company should address frequent power failures and voltage fluctuations. In addition to this, the company should also lower charges for open-access consumers using renewable energy, he said. P Mohan, President of MIDC Industries Association, said significant rise in electricity tariffs for industries would affect cost competitiveness. Amar Mohite, President of Kalmeshwar Industries Association, Nitin Lonkar, Public Relation Officer of FIA-V, and others were present. The MSEDCL has proposed a multi-year tariff hike for the period from April 1, 2025 to March 31, 2030.