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Wednesday, May 5, 1999

Protests against hike in tariff

EXPRESS NEWS SERVICE  
VADODARA, May 4: The Federation of Gujarat Industries has urged Chief Minister Keshubhai Patel to roll back the recent ``abnormal'' hike in electricity duty for captive consumption lest it renders industrial units unviable.

In a strongly worded letter to the Chief Minister, with copies to Power Minister Kaushik Patel and Industries Minister Suresh Mehta, FGI president Amit Goradia says, ``we were shocked and stunned'' to find that the duty on power generated by industrial units in emergencies has been hiked from 10 paise to 40 paise. For co-generation plants the hike is from 3 to 20 paise, meaning a hefty 400 to 600 per cent hike.

Goradia states that industrial units had installed diesel generating sets because of the ``inadequate and undependable'' power supply of the Gujarat Electricity Board. Industries have had to invest a lot of capital to generate power and bear the maintenance and running costs.

Diesel power becomes expensive for industry as these power sets are considered as stand-by units and don't run continuously to meet the power needs of the industry, the letter says.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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