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TN slashes electricity tariffs for powerloom units
May '12
Powerloom weavers in the southern Indian state of Tamil Nadu got a sigh of relief as the state government announced reduction in power tariffs for them.

Powerloom unit owners in the state were on strike since May 3 protesting against the 300 percent hike in power tariffs announced earlier this year by the Tamil Nadu Electricity Regulatory Commission.

Making the announcement, Chief Minister J Jayalalithaa said the decision to reduce power tariffs for powerloom unit owners would cost an additional Rs. 596.9 million to the state's exchequer.

She said the government would continue to give free electricity supply to those weavers who consume up to 500 units in two months.

For powerloom units, which use 501 to 1000 units every two months, the power tariff has been slashed to Rs. 2 per unit from the existing Rs. 4 per unit, with the difference of Rs. 2 per unit to be given as subsidy, the CM said.

Powerloom unit owners would have to pay Rs. 3 per unit instead of the Rs. 4 per unit payable at present, if they consume 1001 to 1500 units every two months.

The annual subsidy given by the state government to powerloom unit owners would now increase to Rs. 2.13 billion from the earlier Rs. 1.53 billion. The increased subsidy of Rs. 596.9 million would be passed on to the Tamil Nadu Generation and Distribution Corporation Ltd.

Fibre2fashion News Desk - India

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