Jaipur: Industry bodies across Rajasthan have strongly opposed the recent hike in electricity tariffs announced by the Rajasthan Electricity Regulatory Commission (RERC). The steep rise in fixed charges and the levy of regulatory charges will increase production costs, erode competitiveness, and hurt employment in the manufacturing sector, they argue.Several industry associations have demanded that the state govt roll back the increase and introduce lower power rates for night hours, when demand is low. This, they reason, would enable industries to operate more efficiently and cut back electricity costs.The revised tariffs raised fixed charges from Rs 300 to Rs 380, while imposing a new regulatory surcharge of Rs 1 per unit. Industry representatives complain that the state’s fixed charges are already among the highest in the country.“The tariff hikes will hit small and medium enterprises the hardest. For low-consumption industrial units, the effective power rate could rise to nearly Rs 15 per unit”, said Jagdish Somani, president of the Vishwakarma Industries Association.“If fixed charges are not reduced, many MSMEs will struggle to survive. Nowhere else are such high tariffs to be found in India”, he added.In a joint memorandum to the energy minister, the United Confederation of Rajasthan Industries (UCORI) expressed deep concern over the revision, calling it “neither justified by current economic conditions nor aligned with the govt’s commitment to industrial growth, investment promotion, and job creation”.UCORI highlighted that even though many industries are still operating below capacity due to subdued demand, fixed charges are payable irrespective of production levels.“This penalises even those running at reduced capacity. The increase will lower competitiveness, discourage investment, and could lead to the closure of units and consequent job losses”, said Nilesh Agarwal, president of UCORI.The memorandum points to rising competition from neighbouring states like Gujarat, where power tariffs are significantly lower. “Already, the financial condition of many industries in the state is under stress due to multiple fuel surcharges. Passing on inefficiencies of power utilities to industries is unjustified”, Agarwal added.The Rajasthan Textile Mills Association (RTMA) has also raised strong objections to the power tariff hikes, terming the new regulatory surcharge of Rs 1 per unit “a major distress point”.The association noted that the new energy rates and fixed charges will increase the effective burden on 132 kV-level industrial consumers by around Rs 0.25 per unit.“This steep increase comes at a time when industries are facing global and domestic slowdowns, high input costs, and shrinking demand”, the RTMA said, adding, “It will directly impact capacity utilisation and employment.”
