Tnm ground report: struggling coimbatore msmes reel under steep power tariff hike

NO TIME OF DAY METERS  In September 2022, the state government increased peak hour (6 am-10 am and 6 pm-10 pm) charges by up to 15% for the industries that fall under Low Tension (LT) 3B

Tariff. At the time of the announcement, Tamil Nadu Generation and Distribution Corporation (TANGEDCO) did not have any Time of Day (ToD) meters to monitor the usage of power during peak

hours. Even a year after the tariff hike, the consumers have yet to see the ToD meters. TNM also found that all the consumers do not have a detailed EB card on how much they need to pay for

peak hours consumption, fixed charges, and taxes.  Paramashivam, district secretary of the Tamil Nadu Association of Cottage and Micro Enterprises (TACT) said that farmers in the Delta

region have received subsidies. In Erode, the powerloom industry enjoys free power up to 1,000 units. “Here, we are generating economy, creating employment regardless of education

qualification one has, and we are training the youngsters to become entrepreneurs in the field. But, we got no recognition from the government. On top of it, the power tariff hike has

impacted the industry badly,” he said. Paramashivam runs a small-scale business in Sowripalayam which produces textile machinery supplies and spares for garments manufacturing units. His

expenditure has sharply increased from Rs one lakh to Rs 1,40,000 after the power tariff hike. NEGLIGENCE OF THE STATE AND DISAPPEARANCE OF MSMES  Viswanathan, vice president of TACT pointed

out how one wrong move has forced them to pay huge power tariffs. According to him, the TN Electricity Regulatory Commission (TNERC) introduced a policy for the micro-sector units that

consume less than 12 kW of power in 2001. The state governing body directed TNEB to provide 3A-1 power connections to such units, but they were given 3B connections. Under the 3A-1

connection, a unit of power costs Rs 4.65 paise, whereas Rs 7.65 paise is charged for the 3B connection. “For all these years, we were exploited. To avoid further escalation of this issue,

the government addressed the 3A1 connection only. But all other demands are yet to be addressed,” Viswanathan added. The policies of the last two decades have impacted the MSMEs so badly

that even Viswanathan said that he wanted to quit the industry.