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Punjab textile industry opposes hike in power tariff
Jul '12
The textile industry in the north Indian state of Punjab has opposed the 12 percent increase in power tariff in the state.
An average hike of 12.08 percent in electricity rates has been announced by the Punjab State Electricity Regulatory Commission on all categories of consumers for 2012-13.
In addition, for the first time, an additional 10 paise per unit has been levied on continuous process industry such as spinning. The new rates will become effective from November 1, 2012.
Representatives of the textile industry said the huge rise in electricity charges would make the state’s textile industry further uncompetitive when compared to textile industries from other states like Himachal Pradesh and Madhya Pradesh.
The representatives said the hike in power tariffs would result in an increase in their manufacturing cost, which would force the industry to shift to other states where the cost of production is lower than in Punjab.
Several Ludhiana-based textile conglomerates such as Nahar, SEL, Trident and Vardhman have already set up their new units in Madhya Pradesh, where electricity is about 20 percent cheaper compared to Punjab.

Fibre2fashion News Desk - India

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