Micro And Small-Scale Industries In Tamil Nadu Protest High Electricity Charges And Fixed Tariffs

Micro and small-scale industries in Tamil Nadu have taken a significant step by deciding to halt their operations in protest against several issues, primarily the high electricity charges during peak hours and fixed charges on power load, among other grievances. This move is a result of the collective action taken by more than 250 industrial estates, sector-based organizations, and district-based associations, which recently formed the Tamil Nadu Industrial Electricity Consumers' Federation. These entities have come together to challenge the tariff structure imposed by the state-owned distribution company, the Tamil Nadu Generation and Distribution Corporation (TANGEDCO).

Despite efforts by Chief Minister MK Stalin to address their concerns, including reductions in fixed charges, a slight decrease in peak-hour tariffs, and increased flexibility for seasonal industries to adjust their electrical load based on demand, the industry umbrella body remains resolute in its decision to proceed with the strike. The government estimates that these concessions will lead to a revenue loss of Rs 2,000 crores for the distribution company. However, industry representatives assert that their core issues and demands have not been adequately addressed by the government, prompting them to continue their strike.

The affected micro and small industrial units span various sectors, ranging from automobile component manufacturing, knitwear production, machinery fabrication, defense component production, rice milling, printing, to smaller-scale enterprises like pappadam making. J James, the coordinator of the federation, revealed that associations and industries from across the state, representing over 8 lakh industrial units, have joined the strike. This collective action is anticipated to result in the non-utilization of 9 MW of electricity and could impact the livelihoods of numerous workers employed by these MSME units.

In case the Tamil Nadu government fails to respond to their demands, the organizers of the strike are prepared to explore further actions, including the possibility of an extended strike. Such a prolonged strike could have significant repercussions for key industrial sectors in the state, including automobiles, textiles, and leather, among others.

The primary grievance of small industries is the significant increase in fixed charges, especially for low-tension (LT) connections, which occurred last year and substantially affected their operations and profit margins. They are calling for a reduction in fixed charges for LT IIIA (1) and LT III B category customers, as well as for high-tension (HT) connections.

Additionally, the Tamil Nadu Industrial Electricity Consumers' Federation has urged the government to eliminate peak-hour charges for low-tension connections. According to James, there is currently no sub-meter in place to accurately track peak-hour usage, and a 15% charge on total consumption has been imposed on micro and small-scale industries during these hours, regardless of whether they use power during that period. The federation is advocating for a reduction in the peak time window from the current eight hours to four hours and a 20% charge for high-tension lines.

K Baskaran, an industrial manufacturer near Chennai, pointed out that most MSME units operate from 10 am to 6 pm, and the peak-hour tariff significantly hinders industrial productivity in the state. While the state government offers certain tariff subsidies during nighttime hours, they are of limited benefit to most industries, except those that run continuously.

Furthermore, industry owners are requesting permits for the direct purchase of electricity from private players and the removal of solar networking charges as part of their broader demands.