New Delhi: Industrial power tariffs in parts of West Bengal will increase from September 1, with the state electricity distribution utility clarifying that the revision will apply only to industrial consumers in the Damodar Valley Corporation (DVC) command area.
West Bengal State Electricity Distribution Company Ltd (WBSEDCL) said the revised rates would remain competitive with DVC tariffs even after the increase. The clarification follows demands from steel industry stakeholders for withdrawal of the proposed hike, which they say could raise production costs and hurt efforts to attract new investment to the state.
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Sumit Mukherjee, Director (Distribution) of WBSEDCL, told PTI that the increase would be restricted to industrial consumers in the DVC command area.
“Even after the proposed increase, our tariff will remain Re 1 per unit lower than that of DVC. Earlier, the gap was Rs 2 per unit,” Mukherjee said.
Under the revision, tariffs will rise by Re 1 per unit for 33 KV connections and Rs 1.50 per unit for 11 KV connections from September 1.
At present, the tariff for 33 KV industrial connections is Rs 4.70 per unit. The revised rate will be Rs 5.70 per unit, representing an increase of more than 20 per cent.
“This tariff was fixed only two to three years back,” Steel Re-Rolling Mills Association of India (SRMA) chairman Vivek Adukia told PTI.
Mukherjee said industrial consumers outside the DVC command area currently pay more than Rs 7 per unit.
WBSEDCL operates under two tariff regimes. In the DVC command area, it shares a common distribution licence with DVC, covering areas on both banks of the Damodar river across parts of Burdwan, Howrah, Hooghly and Bankura. Outside the DVC command area, WBSEDCL is the sole distribution licensee and follows a separate tariff structure, officials said.
The proposed increase was discussed at a recent meeting between a joint delegation of the SRMA and West Bengal Sponge Iron Manufacturers Association (WBSIMA) and state Industry Minister Tapas Roy. PWD and PHE Minister Ajay Poddar also attended the meeting.
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The delegation, led by Adukia and comprising promoters of several steel companies, argued that the hike would increase costs for energy-intensive steel units at a time when the BJP government is seeking to improve West Bengal’s investment climate and attract fresh capital.
Association sources said the ministers had indicated that the increase would be capped at 50 paise per unit. The SRMA and WBSIMA, however, have demanded a complete waiver.
“We have received their prayer and forwarded it to Chief Minister Suvendu Adhikari. But, there was no assurance from our end to the industry,” Roy told PTI.
The delegation also sought an annual allocation of 10 million tonnes of high-grade coal from Eastern Coalfields Ltd to support sponge iron production.
It further requested 15-20 million tonnes of iron ore fines and lumps from the Odisha Mining Corporation, to be routed through the West Bengal Mineral Development and Trading Corporation.
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