Chennai,  The Tamil Nadu government is contemplating reducing the proposed power tariff hike for MSME industries after several objections were raised by the affected small industrialists.

Tamil Nadu Minister for Electricity, Shenthil Balaji, in a statement on Wednesday said that the state electricity department would take a decision on the petitions and objections received from MSMEs. The minister also said that the electricity department will take a final decision after consultations with Chief Minister M.K. Stalin in a couple of days.

Notably, the Tamil Nadu Generation and Distribution Company (Tangedco) had proposed a revision of the demand and fixed charges for the power consumers of the state. The revised proposal was submitted to the Tamil Nadu Electricity Regulatory Commission (TNERC).

The Tamil Nadu Electricity Regulatory Commission (TNERC) has already conducted a few public hearings and all sections of people including domestic consumers, industrial consumers, business groups, etc attended the hearings and gave their opinion. MSMEs across the state had attended the hearings and leveled their objections to the proposed hike and said that if the tariff was hiked, then it would mean a death knell to the industry.

K.M. Parameswara Gounder, owner of an MSME unit in Guindy, Chennai while speaking to IANS said: "We were slowly picking up after the Covid-19 pandemic and the lockdowns and shutdowns. Mine is a small foundry unit that requires electric power in a decent quantity. Tangedco has given a proposal to the TNERC to increase tariff for our sector and if that happens it is better to shut down the unit and bear the huge losses, I have suffered all these years since Covid lashed at us."

While there is a possibility of the proposed hike in tariff for MSME sector being rolled down, the minister has clarified that there would not be any reprieve for domestic consumers.

The officials of Tangedco are vouching that if the revision is not affected now, the power utility will go for heavy losses as huge interest is being paid for the loans taken.