MSMEs seek reduction in fixed charges for electricity
The Federation of Coimbatore Industrial Associations has requested the Tamil Nadu government to reduce fixed electricity charges for MSMEs. They argue that the current high costs are hindering production and have asked for exemptions for smaller units.
Why it matters
High operational costs for MSMEs directly impact the industrial output and economic stability of the region.
Members of the Federation of Coimbatore Industrial Associations (FOCIA), who met Chief Minister C. Jospeh Vijay in Chennai on Wednesday (July 29), sought immediate measures to reduce the electricity fixed costs for Micro, Small and Medium-scale Enterprises (MSMEs) that have LT-CT power connection.
They told the Chief Minister that this single measure would reduce the production costs for the MSMEs in the State. The fixed costs were ₹35 a kw earlier and was now ₹165 a kw. The Federation said micro and small-scale units that use less than 18 KW power should be exempted from the mandatory power factor.
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