CII concerned over power tariff hike in Andhra

April 3rd, 2012 - 1:15 am ICT by IANS  

Hyderabad, April 2 (IANS) The Confederation of Indian Industry (CII) Monday voiced its concern over the steep hike in electricity tariff for industry in Andhra Pradesh.Suchitra Ella, chairperson, CII Andhra Pradesh said the hike of 20 to 25 percent for commercial and industrial consumers would send wrong signals to the industry and prospective investors, especially at the time when industry is in a recovery mode from the negative impact of the global economic crisis.

The increase in power tariff for industrial consumers from present level of Rs.4.13 to Rs.5 per unit will lead to increase in the cost of production, she said in a statement.

Ella felt that the government could have reduced the power subsidies and resorted to better expenditure management methods, instead of hiking the power tariff rates.

“The industry is unable to meet the minimum production demands due to frequent power cuts and power holidays. The hike in the power tariff will further lead to greater burden for the industry,” she added.

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