CPI(M) opposes ‘15-fold hike’ in electricity duty on small industries

The CPI(M) State Committee has demanded that the government withdraw the recently approved hike in electricity duty as it places an undue burden on small and medium enterprises.

In a statement on Thursday, party State secretary V. Srinivasa Rao criticised the decision of the Legislative Assembly to increase the per-unit electricity duty on commercial connections, and small and cottage industries from six paise to ₹1.

Describing the move as contrary to the assurances given by the coalition government, Mr. Srinivasa Rao said small industries, including ferro alloy units, textile mills, and petty businesses, were already facing severe financial stress. He said that entrepreneurs were struggling due to mounting losses and impact of true-up charges, and that the hike in electricity duty would further aggravate their difficulties.

As the government had repeatedly promised not to increase power charges, and reduce them if possible,  the 15-fold rise in the electricity duty was unjust and shocking, he said.

“By legalising the hikes initiated during the YSRCP regime, the TDP-led NDA dispensation has demonstrated that both parties are aligned on power sector reforms that burden consumers,” he observed.

The CPI(M) leader demanded that the government revoke the amendment Bill and restore the electricity duty to the earlier rate.