MSMEs seek reduction in fixed charges for electricity

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.

“We highlighted multiple demands to the Chief Minister. He asked us what was the issue of prime importance, and we said fixed costs should be reduced. The Chief Minister has assured that he will study the demand,” said J. James, one of the coordinators for the Federation.