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This is an archive article published on December 10, 1998

Industry to observe black day against power-tariff hike

Mumbai, Dec 9: Over two lakh industrial units and traders in Maharashtra have decided to observe a `Black Day' on December 14, the first ...

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Mumbai, Dec 9: Over two lakh industrial units and traders in Maharashtra have decided to observe a `Black Day’ on December 14, the first day of the winter session of the state assembly, to protest against the increase in power tariff by the Maharashtra State Electricity Board (MSEB).

These units will switch off power at their end between 11 am and 12 noon and between 7.30 pm and 8.00 pm on that day. Various chambers and associations of trade, industry and commerce are also joined by the consumers forum in the protest which is led by the apex coordination committee. The apex body has been set up to fight jointly for the cause.

While MSEB maintains that the increase in power and tariff which came into effect last September is less than 8 per cent, representatives of industrial organisations say that this ranges from 40 per cent to 100 per cent for local consumers and 20 per cent to 40 per cent for commercial and industrial consumers.

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These bodies not only have demanded withdrawal of the increase in tariffbut also that the additional amount which has been paid by consumers should be credited.

Meanwhile, the Thane-Belapur Industries Association (TIBA), which has filed a writ petition in the Mumbai high court against MSEB’s move, has obtained a state from the court preventing it from a further revision in tariff. A similar case has also been filed in the Aurangabad high court.

Maharashtra Chamber of Commerce & Industry’s president Kushalchandra Poddar said on Tuesday that when units are suffering from recession, the state, instead of helping the industry, has been imposing additional taxes, removing tax benefits and increasing power tariff. Industries will then have no option but to shut down operations or shift to other states.

"Small and medium-sized companies have no choice but to close down the units," said TIBA president Dinesh T Parekh, adding that around 750 units have already moved out of the Thane-Belapur region, inclusive of 150 alone during the past year.

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Industries have accused MSEB of nottaking any serious steps in collecting long-pending arrears of Rs 3,000 crore from its various consumers. Political interference for personal gains in the functioning of the board is affecting the common man, representatives of the industrial organisations said.

Due to mismanagement of the government, the international investment rating of the state has also been hit, Parikh said, adding that the World Bank has decided not to fund any project in Maharashtra.

MSEB must also work to improve its working, they said. It should reduce the transmission and distribution losses and theft of power which amounts to around 20 per cent. The government should also immediately implement the Rajadhaksya Committee report on the restructuring of MSEB, they added.

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