COIMBATORE: Industry bodies in Coimbatore have urged Chief Minister C Joseph Vijay to waive this year's electricity tariff hike for MSMEs, stating that rising power and property costs are hurting the sector and threatening its competitiveness.
Codissia President Highlights Key Concerns
M Karthikeyan, president of the Coimbatore District Small Industries Association (Codissia), noted that the district is home to more than 2.5 lakh MSMEs in sectors such as engineering, pumps, motors, foundry, textiles, auto components, and defence equipment. He emphasized that these units make a major contribution to employment, exports, and industrial growth.
Sharp Increase in Fixed Electricity Charges
Karthikeyan pointed out that fixed electricity charges for LT and LTCT consumers have risen sharply since 2022. The charge, which was Rs 35 per kW earlier, increased to Rs 150 in 2022, Rs 153 in 2023, Rs 160 in 2024, and Rs 165 last year. He explained that the increase was based on a 2021 Tamil Nadu Electricity Regulatory Commission order providing for annual revision over five years, with another hike due this year.
He urged the government to reduce fixed charges from the present Rs 165 per kW to one-third of the current level. Additionally, he sought a 50% cut in property tax for industries to ease mounting operational costs.
Call for Infrastructure Support
Karthikeyan called for infrastructure support, suggesting that the government establish three to four industrial parks of around 1,000 acres each within a 25 km radius of Coimbatore. With land prices in the city rising steeply, such parks would help attract fresh investments and support expansion by both large industries and MSMEs.
In a representation to the chief minister, Codissia stated that these measures are essential for the survival of MSMEs amid geopolitical uncertainties and rising production costs.
Networking Charges Hinder Green Energy Adoption
N Pradeep, secretary of the Indian Chamber of Commerce and Industry, said networking charges are discouraging industries from adopting green energy such as rooftop solar. He urged the government to waive networking charges for rooftop solar installations and introduce a subsidy scheme for rooftop and ground-mounted solar systems, offering 25% support for capacities up to 150 kW.
