Electricity tariff for MSME's should be slashed - MLA N Karthik

Coimbatore: DMK MLA N Karthik has requested for a concession on electricity tariffs for small, micro and medium-sized industries affected by the curfew.


Coimbatore:  DMK MLA N Karthik has requested for a concession on electricity tariffs for small, micro and medium-sized industries affected by the curfew.

In a letter to the District Collector, he said with the curfew in place until April 14 on behalf of the central government to curb the coronavirus attack, the MSME's, which are already struggling, are being forced into a worst-case scenario where they cannot even pay wages as there is no income because of the curfew. 

In this context, the Electricity Board has decided to charge the electricity bills the same as last month as it is unable to carry out the electrical calculation work for MSME's. As the industries haven't been functional from March decision to make them pay electricity bills by April 20 has come as a shock to these companies.

In addition, the Tamil Nadu Electricity Board has set a minimum amount of horsepower for the factories. In his letter he said, "During this calamity period, I urge that to completely eliminate this minimum amount and provide an electricity tariff concession, giving MSME's a 6-month extension to pay the electricity bills."

Also, the Reserve Bank of India announced that it would postpone the business loan monthly instalments till June. He said, in practice, many banks have not implemented the announcement and have charged interest. The Government must make the necessary efforts to implement this notification.

Furthermore, after the curfew, businesses must pay 25% of the long-term debt and interest-free on a capital loan that is held. He hence requested the District Collector to make the recommendations to the Central and State Governments.

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