Ease of Doing Business for MSMEs: The tariff revision has been suggested because Tamil Nadu Electricity Department is seeing losses and paying higher interest for its loans, said Balaji.
Ease of Doing Business for MSMEs: Electricity Minister of Tamil Nadu, V Senthil Balaji on Tuesday said the government would look at micro, small, and medium enterprises (MSMEs) demand to reduce the proposed electricity tariff hike, The New Indian Express (TNIE) reported.
The Minister told reporters the proposed revision of demand and fixed charges for MSMEs will be completed and submitted to the Tamil Nadu Electricity Regulatory Commission (TNERC) within a few days, after consultation with Chief Minister MK Stalin.
However, Balaji eliminated the possibility of reducing the electricity hike for domestic units, as per the report.
He also said that the tariff revision has been suggested because Tamil Nadu Electricity Department is seeing losses and paying higher interest for its loans.
“Public hearings were held and MSMEs and representatives of industrial organizations opined that the proposed tariff is high for LT and HT (low tension and high tension) consumers. The MSMEs demand will be considered in consultation with the chief minister and the final tariff to be submitted in a couple of days,” Balaji added.
V Senthil Balaji in July announced the submission of the proposed revision of the electricity tariff to TNERC reasoning burgeoning losses, liabilities under the Ujwal Discom Assurance Yojana (UDAY) scheme, and the need to improve the transmission network.
Importantly, traders’ body Confederation of All India Traders (CAIT) earlier this month had also sought a separate category in electricity tariffs for MSMEs to make them eligible for subsidies in Tamil Nadu. According to a report by The Times of India, the proposal for tariff revision by state-run Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) has placed commercial connections on par with heavy industries which puts small businesses at a disadvantage.
Meanwhile, as part of the COVID Assistance and Relief to Entrepreneurs (CARE) scheme of the Tamil Nadu Government, the state’s Industries Department had reached out to offer financial assistance to the Covid-hit MSMEs during 2020-21 and 2021-22 to get back on their feet, The Hindu had reported last week.