Chandigarh,20.12.17-Confederation of Indian Industry (CII) today lauded Punjab Government for partially accepting Industry demands regarding Power tariff in the state. A CII delegation led by Mr Sachit Jain, Dy Chairman, CII Northern Region & Mr Gurmeet Bhatia, Chairman CII Punjab State Council were present at the meeting with senior state Government functionaries including Rana Gurjeet Singh, Minister for Power & Irrigation, Punjab wherein the Government was apprised of the prevailing Industry sentiment post the tariff order for 2017 – 18 issued by the state regulatory Commission last month.

Complementing the state Government for agreeing to industry demands, Mr Sachit Jain shared that Quality of power has overall improved in most industrial pockets while there might be some issues in certain Industrial pockets which needs to be looked after. With regard to retrospective implementation of increased tariff from April 2017 to October 2017,the financial implication on Industry was expected to be around Rs 600 crore. Realising Industry’s inability to undertake this burden, the Government has now agreed to bear the increased tariff to the tune of Rs 300 crore and rest will be borne by industry, which is indeed laudable.

Mr Jain further shared that another point of contention with the industry was the introduction of two part tariff which was to be applicable from January 1, 2018. Here CII had suggested that introducing the 2 part tariff system is a progressive step and should be implemented, however as the industry was facing some issues with regard to its implementation, therefore CII suggested that an upper cap or Maximum Overall Rate (MOR) should be fixed, so that Medium Scale (MS) and Large Scale (LS) category industry are not constrained from consuming more power that there sanctioned load.  The Government accepted our suggestion wherein the Maximum Overall Rate (MOR) would be fixed for Medium Scale (MS) and Large Scale (LS) category industry from January 1, 2018 to March 31, 2018. This will be Rs 6.57 /unit for MS and Rs. 6.89/unit for LS as fixed by PSERC for the year 2017-18. Besides, the Industry would be paying the Monthly Minimum Charges (MMC) as determined by the PSERC.

Mr Gurmeet Singh Bhatia shared that with regard to providing Power at Rs 5 per unit as promised by the Government in its new Industrial policy, the Government will be providing power to Large & Medium scale Industry at Rs 5 per KVAH as variable cost with no change in fixed cost as announced by the PSERC in its Tariff order for  2017-18. This will be effective from January 1, 2018.

The state ministers & officials present assured the Industry that state Government is aware of the difficulties being faced by the industry and is committed to providing all the benefits to Industry as per its newly announced Business & Industrial policy for the state.

The CII delegation also had the support & representation of other prominent local Industry associations including Derabassi Industry Association & Patiala Chamber of Commerce & Industry.