Three years on, govt order on power tariff for cottage, tiny units remains unimplemented

Coimbatore: Cottage and micro enterprises in Tamil Nadu on Friday said a govt order meant to shift eligible tiny, cottage units to the concessional LT-3A(1) electricity tariff has not been implemented even three years after its passage, forcing them to continue paying higher charges under LT-3B.James, district president, Tamil Nadu Association of Cottage and Micro Enterprises, said Coimbatore alone was home to around 20,000 cottage and micro units that largely survive on job-work orders. "These units cater to sectors such as automobile components, textiles and defence supplies, and operate on thin margins dependent on steady outsourcing contracts."As per the eligibility norms, cottage and micro enterprises with connected load below 12kW could be brought under LT-3A(1) category. However, according to entrepreneurs, field officials continue to provide and retain connections under LT-3B, resulting in higher per-unit tariffs and additional peak-hour charges.Under LT-3B, the tariff works out to about Rs7.65 per unit, while it's around Rs4.65 per unit under LT-3A(1), with no peak-hour levy, he said. Despite meeting the criteria, many units were denied migration to the lower tariff, leading to what the association termed as "systematic denial" of a benefit intended for small manufacturers.After sustained protests, it was in 2023 that the state govt issued an order to convert nearly 2.70 lakh connections with loads below 12 kW to LT-3A(1), the association said. Yet, the conversion has not happened on the ground.Pointing out that the state was offering an annual subsidy of about Rs10 crore to facilitate such conversions, the association said the benefit has not reached the intended users. The association urged the govt to issue fresh directions to ensure the subsidy received over the past three years is passed on to eligible consumers.G Prathapsekar, of Vellandipalayam, who has been manufacturing pump set spare parts for 28 years on job-work basis, said he was paying around Rs8,000 a month on electricity bill, including fixed charges of Rs1,950, meter related charges of Rs1,700 and energy charges of Rs4,200-Rs 4,700. Despite using less than 12kW and repeatedly seeking conversion to LT-3A(1) for two years, he said no action has been taken. Additional charges linked to power related components have added to the burden, he said, warning that electricity costs are pushing small units into losses.