Industry bodies urge CM to waive this year’s EB charge hike

COIMBATORE: Industry bodies in Coimbatore have urged chief minister C Joseph Vijay to waive this year’s electricity tariff hike for MSMEs, saying rising power and property costs are hurting the sector and threatening its competitiveness.

M Karthikeyan, president of the Coimbatore District Small Industries Association (Codissia), said 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 said these units make a major contribution to employment, exports and industrial growth.

Karthikeyan said fixed electricity charges for LT and LTCT consumers had risen sharply since 2022. The charge, which was Rs 35 per kW earlier, was increased to Rs 150 in 2022, Rs 153 in 2023, Rs 160 in 2024 and Rs 165 last year. He said the increase was based on a 2022 Tamil Nadu Electricity Regulatory Commission order providing for annual revision over five years. Another hike is due this year.


He urged the govt to reduce fixed charges from the present Rs 165 per kW to one-third of the current level. He also sought a 50% cut in property tax for industries to ease mounting operational costs.

Calling for infrastructure support, Karthikeyan said the govt should establish three to four industrial parks of around 1,000 acres each within a 25km 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, he said.

In a representation to the chief minister, Codissia said these measures were essential for the survival of MSMEs amid geopolitical uncertainties and rising production costs.

N Pradeep, secretary of the Indian Chamber of Commerce and Industry, said networking charges were discouraging industries from adopting green energy such as rooftop solar. He urged the govt 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 150kW.