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Today Date : Friday, April 19, 2024

IIF opposes hike in Power Tariff

IIF opposes hike in Power Tariff

Sudden increase in power tariff is hurdle to TN foundries, said the Institute Of Indian Foundrymen (IIF), Southern Region, Chairman, S.MuthuKumar.

He said,"IIF, a national level body has 4,000 including 1000 units in Coimbatore and Chennai Chapters. Foundry Industry is one of the core sectors contributing both directly and indirectly to around 50% of Manufacturing GDP. Manufacturing Sectors like Automotive, Mining and Construction Equipment, Oil and Gas, Energy, Medical, Food and Agriculture rely lot on Foundry Industry for their product Manufacturing. Foundry Industry is therefore rightly called as Mother of all Industries.

Around 95% of Foundries in India are in the MSME segment contributing significantly to the 17.5 billion Dollar industry, with export revenues around 4 billion Dollars. Given the reliance on Manpower, Foundries also generate distributed wealth and employment across the Country.

So, a continuous power supply with good power quality is need for our industry as our industry is entirely dependent on Thermal Energy (Heating, Cooling and Constant Temperature requirements). The tariff for future years shall be decided based on True Up Petition filed by the DISCOM.

Sudden increase in Electricity Charges is hurdle who are already are facing stiff competition. Entire raw materials and input materials are sourced from other states where suppliers have their factories for various positive reasons. 

Due to transportation cost, the cost of materials is already high. Hence, power cost at reasonable rates is must to stay viable. A variable slab system such as 0-50 KW, 50-100 KW and above 100 KW will make chaos and a non-level playing field for the MSME sector. This may trigger unrest and negative influence in the society," he said.