Industries in states reeling under high power tariffs may be in for some relief. Fear of losing investment to neighbouring states that have lower tariff might result in state lowering its tariff to competitive levels.
The government will soon decide on the demand of matching the power tariff for industrial belts in the state with those in Gujarat and Madhya Pradesh. The assurance came from revenue minister Narayan Rane during the discussion over the calling attention motion moved by leader of opposition Eknath Khadse in the legislative assembly.
Khadse pointed out that over 500 small and big industrial units in Tarapur in Thane and a few surrounding areas had either downed their shutters or shifted base to neighbouring Gujarat and Madhya Pradesh due to more efficient and cheaper power there. He said recently the state had cut power supply to around 100 units in Tarapur MIDC citing they had breached pollution rules. This, Khadse said, not only led to unemployment in the state but also resulted in industries shifting to other states. According to him, power tariffs in other states were much lower compared to those in Maharashtra.
Rane said within a few days the government would decide on matching the power tariffs with those in other states pointing out that his ministry had already initiated Rs 3000 crore programme to rebuild basic amenities in industrial pockets of the state.
Later, addressing local businessmen at Vidarbha Industries Association (VIA), the minister said a committee had been formed to review the tariffs and a decision could be expected by Friday. "I agree high power tariffs have been bothering the industries and the issue will be addressed." Later he told TOI that review of power tariffs for all categories of consumers was being considered and not just for industries alone. This includes agriculture and even domestic power users. He hinted that most probably the latest hike of Rs 1.60 per unit would be revised.
The minster was reluctant to look into other demands such as reducing the rates charged for land in the MIDC's estates on the grounds that the government needed funds to set up infrastructure. "In Vidarbha alone tenders for setting up industrial infrastructure to the tune of Rs 470 crore had been floated," he said.
Members of the Butibori Manufacturers Association (BMA) demanded a six month breather from action to take back vacant plots in the estate. BMA vice president Puneet Mahajan said many entrepreneurs could not set up the factories due to recession and needed six months to fulfill the conditions. Rane agreed to look into it though MIDC's CEO Bhushan Gagrani expressed reluctance.
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