Flagging up the impact of rising power tariff for the manufacturing sector, the Confederation of Indian Industry, Telangana, (CII-TS), has appealed to the State government to reduce the rates and wheeling charges and facilitate companies to benefit by harnessing more solar energy.
Power prices have gone up significantly hurting the manufacturing firms, Chairman Vagish Dixit said, pointing out that the electricity cost accounted for 25-30% of operating expenditure for companies, even 50% for some. Stating that the industry body had highlighted the challenges faced by the firms, on this count, to the Industries Secretary, he said besides supply at lower rates, it had sought reduction of wheeling charges and permission to companies to purchase power from private producers.
CII-TS, which plans to meet the regulators and Chief Secretary next month, also wants the 1 MW cap on solar power generation by companies to be removed. Enhancing the share of solar power had become important with most international customers, of the companies, emphasising sustainability measures. “They want to see if you have a carbon footprint that is neutral or negative,” Mr. Dixit said in a virtual media interaction on Friday, his first after assuming office as Chairman.
Noting that lower power tariff would fuel more industrial activity and translate into higher revenue for the government, he said the State was expected to take a positive view. “I have been told the government is looking favourably... reassured there is a lot of work going on in terms of coming up with a more creative solar policy,” he replied to queries.
Land use norms
Cost competitiveness was key to manufacturing firms, he said, suggesting how with certain changes to land use norms this could be improved in Telangana. Elaborating, he said now factory construction was allowed on only 40-45% of the total land area making the project expensive. At least, 70-75% should be allowed and company directed to undertake the greening initiatives elsewhere.
Vice-chairman C. Shekar Reddy said the State government should also consider giving land on lease instead of outright sale.
On CII-TS plans for this fiscal, Mr. Dixit said it will be pursuing a 7-point agenda, including efforts to improve membership services; launch of Warangal and Nizamabad zones; and focus on key sectors. It will be setting up incubation centre for startups in Hyderabad and State-level accelerators.
