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Today Date : Friday, July 19, 2024

Power Tariff hike to cripple Pump Industry

Power Tariff hike to cripple Pump Industry

SIEMA, Coimbatore, representing pump manufacturers, appealed to the government to withdraw the proposed steep hike in power tariff.

It  said its members manufacture more than 55% of the domestic and agricultural pumps sold in India. Over the last two years, they were facing multiple challenges, including COVID 19 lockdown, rise in the price of raw materials, GST from 12% to 18%. It hit the demand much and many manufacturers,  jobs of thousands of people.

In this scenario, the Government announced hike in the power tariff steeply forcing the suppliers of components for pumps to rise their price by three-fold. The power charges for other categories of industries will also rise between 20 and 52%. 

The impact of the power tariff revision at the proposed rates is estimated to have an impact of 5-8% on the price of pumps. It will further increase the price difference between the pumps made in our region and the pumps made in Gujarat. 

Pumps manufactured in our region will not be preferred at this higher cost leading to loss of business for our pump manufacturers.  Pump business will move away from our region towards the manufacturers in Gujarat. Our vision of attaining 4% global share of pumps will become difficult.

We fear that more pump manufacturing companies, and their ancillaries will shut shop and many more jobs will be lost.

To safeguard the pump industry and the jobs that this industry provides, the Government should withdraw the tariff hike.