Proposed hike in Power tariff PDD making us scapegoat to hide its failure: Industrialists to JERC
The industrialists in Jammu have out rightly rejected the proposed tariff hike to be levied on consumers of Jammu and Kashmir in coming days.
Sources informed that during public hearing conducted by Joint Electricity Regulatory Commission J&K and Ladakh on proposed tariff hike, the industrialist slammed government citing that they were being made scapegoats as Power Development Department (PDD) failed to control AT&C losses which are at 50 percent.
They also questioned UT government why they were made scapegoats despite being best paymasters.
While rejecting the proposed hike, the industrialists have urged the Joint Electricity Regulatory Commission J&K and Ladakh to keep the industrial sector of the UT out of the preview of the proposed tariff hike.
Despite the clarification by the government of 17.74 percent proposed power tariff across Jammu and Kashmir, the J&K Power Distribution Corporations have filed a petition with Joint Electricity Regulatory Commission J&K and Ladakh for an average approximately 50% Power Tariff hike along with substantial increase in the Fixed/Demand Charges for the year 2022-23 for Industrial Sector of J&K.
The proposal for the power tariff has been put in public domain for suggestions and feedback. Today a public hearing on the proposed hearing was held where various stakeholders including members of various industrial associations of Jammu.
President Bari Brahmana Industries Association (BBIA) Lalit Mahajan said, “We had cordial meeting with chairman Joint Electricity Regulatory Commission J&K and Ladakh, Lokesh Jha and we shared industries’ apprehensions with him. Chairman shared that hike in power tariff are merely at proposal level and nothing has been finalized yet and the decision on hike will take after taking into consideration all the valid suggestions”.
Seeking withdrawal of the proposed petition, Mahajan said “We urged the chairman to keep the industrial sector of the UT out of the preview of the proposed tariff hike. It is a matter of great concern that such a steep increase is projected by the Department, which was never projected in the past. The Department has failed to reduce the AT&C Losses which is projected @ 43.77% for the FY 2022-23 but in the last three Years Department has failed to reduce the Transmission Losses which is 50 to 52% as per the Petition. The JPDCL has mentioned in the Writ Petition with the justification of gap between the Purchase and Supply of Energy which is as our opinion only due to excessive Transmission Losses in comparison to National Level, whereas in respect of Industrial Units working in Bari Brahmana Industrial Complex, the Transmission Losses are well within the prescribed limit of Power Development Department which is 7 to 8%, hence we do not understand the reason for increase in the Power Tariff for Industrial Sector who is depositing Rs.225 Crores annually for the purchase of Power. The Government should take preventive measures to plug the Loopholes in the System and try to control Transmission Losses in the areas other than the Industrial Areas and also improve the infrastructure to control the Transmission Losses.
Mahajan pointed out that it is pertinent to mention here that and any further increase in the Power Tariff with the additional burden of 15% Electricity Duty on the Industrial Sector may be resulting into closer of working Industrial Units due to which massive Retrenchment of the Industrial Worker may be the last option for the Unit Holders.
He shared that as representatives of Chenab Textile Mills in Kathua have shared that their power tariff from existing Rs50 Crore annually will rise to Rs.90 Cr, if the new rates are implemented. The textile major which was planning to add another facility with 900 Crore in investments has put the project on hold after getting information about proposed power tariff hike.
Meanwhile Rajesh Jain, chairman Federation of Industries said that the tariff petition is biased to target the industrial sector which have 100% metered consumers. It seems as if the industry of J&K UT is not on the priority list of the government.
“The overall AT&C losses are at 50% and if we segregate the industrial sector from domestic consumers, the domestic AT&C losses come to around 80%. Why impose a tariff hike on industry when it is the highest and best paymaster among all the consumers”, he added.
He said the proposed Power hike if approved shall prove fatal for an already dying industry. Jai added JPDCL in its proposal has justified the hike in Power Tariff by comparing the Tariff of J&K UT with that of Punjab, Haryana and Delhi which are highly industrially developed and centrally located states. When the tariff of J&K UT is compared with that of Himachal Pradesh and Uttarakhand our proposed tariff is much higher whereas in addition to hill state it is a landlocked Inning geographically disadvantage along with militancy torn state surrounded with hostile neighbour and also hearing high input and high cost of production due to additional freight cost
