Proposed increase in electricity tariff an obstacle to Industrial growth in UT of J&K
25-05-2022: An Emergency meeting of members of Bari Brahmana Industries Association (BBIA) was held today under the Chairmanship of Sh. Lalit Mahajan in the presence of Sh. Tarun Singla, Sr. Vice President, Sh. Ajay Langer Vice President, Sh. Viraaj Malhotra General Secretary, Sh. Rajesh Jain Secretary, Sh. Vivek Singhal Treasurer BBIA & other members to discuss the proposed Power Tariff Hike for Industry as per the Petition filed by Jammu Power Distribution Corporation Ltd. with the increase of 36% to 71% Power Tariff along with the substantial increase in the Fixed/ Demand Charges for the year 2022-23 for Industrial Sector of J&K resulting uncertainty prevails in the mind of the Existing Industrial Units as well as Prospective Investors who are in the process of setting up of New Units on the basis of Industrial Package announced by Govt. of India with the slogan of Lowest Power Tariff available for Industrial Sector in J&K.
While going through the Proposed Power Tariff Hike Petition for the FY 2022-23 put on Public Domain by Jammu Power Distribution Corporation Limited, It has been noticed that for Industrial Sector the steep increase of 36% to 71% in Power Tariff and 10% to 113% in the Fixed charges as per the details given below:-
| S. No | Tariff Category | Existing Tariff | Tariff Proposed | Proposed Hike | %age of
Hike |
Existing Fixed Charges | Proposed Fixed Charges | Proposed Hike | %age of
Hike |
| 1 | LT Industrial Supply | ||||||||
| LTS-I
For Connected Load <50KW |
3.30 | 5.10 | 1.80 | 54% | 50 | 100 | 50 | 100% | |
| LTS-I
For Connected Load >50KW |
3.09 | 5.10 | 2.01 | 65% | 47 | 100 | 53 | 113% | |
| LTS-II
For Connected Load upto 15 HP |
3.30 | 4.50 | 1.20 | 36% | 21 | 30 | 9 | 43% | |
| 2 | HT Industrial Supply | ||||||||
| 11KV Supply | 2.95 | 5.00 | 2.05 | 69% | 136.50 | 175 | 38.5 | 28% | |
| 33KV Supply & above | 2.86 | 4.90 | 2.04 | 71% | 136.50 | 150 | 13.5 | 10%
|
|
| 3 | HT PIU | ||||||||
| 11 KV Supply | 3.60 | 5.25 | 1.65 | 46% | 205 | 225 | 20 | 10%
|
|
| 33 KV supply and above (ToD tariff) | 3.34 | 5.20 | 1.86 | 56% | 200 | 220 | 20 | 10% | |
It is a matter of great concern that such a steep increase projected by the Department, which was never projected in past, as per the details mentioned above.
It is pertinent to mention here that the Department has failed to reduce the AT&C Losses which is projected @ 43.77% for the FY 2022-23 whereas the National Level average AT&C Losses is approx. 20% but in last 3 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.
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 which is highest in the Country which 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. It is also worthwhile to mention here that the Prospective Investors, who are in the process of setting up of their Units on the basis Industrial Package 2021announced by Govt. of India with a slogan of Cheap Power available in J&KUT, may opt for the shifting of their project to other States who are offering Lower Power Tariff and Electricity Duty for Industrial Sector.
We request Sh. Manoj Sinha, Hon’ble Lt. Governor, Sh. Nitishwar Kumar(IAS), Principal Secretary to Hon’ble Lieutenant Governor & Power Development Department to kindly look into matter and issue necessary directions for the withdrawal of proposed Petition put on Public Domain by Jammu Power Distribution Corporation Limited which will provide great relief to the Existing Units and also to Prospective Investors who has already taken effective steps to setup their units in near future.
