Defer power hike till normalcy returns in economy: FKCCI

The hike in power tariff has distressed the Industry & Trade in Karnataka who are already going through various challenges due to local and global factors beyond their control, said FKCCI.

“Reports that the power bill for the current month would be higher by ERs 2.89 per unit has come as a dampener as it will increase the prices of their products & services and reduce their profit margin,” said Sri B.V. Gopal Reddy, president, FKCCI. “Our feedback from our Members reveals that some of the most vulnerable sections like micro and small-scale industries and small traders are finding it difficult to even survive due to high input costs. If recurring costs like power go up, they may even be forced to contemplate shutting shop. Those operating in the neighbourhood of other states may even explore possibilities of shifting to other states where such costs are lesser. We therefore fervently appeal to the government to first talk to representatives of Industry & Trade, take stock of their situation and only then consider such issues of tariff revision.”

FKCCI also said that while industry & trade was not against the five welfare measures of the government as promised by it to the people, it cautioned that the resultant increase in fiscal expenditure should not be at the cost of the industry which was only managing to sustain. “Any additional burden on the industry will end up as a tipping point for them to take hard measures like shutting shop, shift their operations to other states or reduce intake of labour thus fuelling unemployment,” FKCCI said.