Indore: MSMEs unhappy over cut in supply of contractual power demand

Manish UpadhyayUpdated: Thursday, May 30, 2019, 04:12 AM IST
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Indore: Apex representative body of micro, small and medium units in state, Association of Industries of Madhya Pradesh (AIMP) on Monday expressed anguish over the government’s move of reducing supply limit of contractual power demand by five horse power.

The body said while micro and small industries were yet to completely recover from the fall outs of demonetisation, the reduction in supply limit posed another challenge to the industry, as it has hiked 43 per cent extra financial load on power expenditure of the units.
“Contractual demand means a slab for allowing power at concessional power tariff. The move is adversely affecting over 48,000 micro and small units of the state, out of which more than 15,000 are located in Indore, Dewas and Pithampur region alone. All the power distribution companies (Discom) of the state have reduced contractual demand of power from 25 HP declared for tariff order of 2016-17 to 20 HP for tariff order of 2017-18,” said president of AIMP, OP Dhoot.

Dhoot informed this correspondent that “This reduction of 5 HP has terminated 30 per cent tariff exemption and subsequently, hiked power tariff by 43 per cent on micro and small units.”

Terming the decision ‘unjust’, Dhoot said “The move will ultimately prove to be a boomerang for the government. This also contradicts the promise of Chief Minister Shivraj Singh Chouhan to avail ease of doing business for the MSMEs.”

He said that the “For its compliance, minimum charge units billing should be terminated for the minimum load consumers having connection up to 150 HP. Power tariff charge should also be rationalised like that of maximum load consumers.”

PS to urge power regulator to address issue

The issue of reduction in power supply limit under concessional rates was raised in monthly meeting of state- level Micro and Small Industries Promotion Board, held in Bhopal. Dhoot along with other industrialists expressed displeasure over the move of power discoms in the meeting, chaired by principal secretary of MSME department and industry commissioner VK Kantarao and requested Kantaroa to make necessary intervention in the matter. Dhoot said that the principal secretary took cognisance of our concern and assured of discussing the plight with MP State Electricity Regulatory Commission and requesting it to reinstate the power tariff of 2016-17.

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