Plea to withdraw Mangalore electricity supply co's proposal to hike power tariff hike

The Kanara Chamber of Commerceand Industry (KCCI) has requested Karnataka Chief Minister B SYediyurappa to withdraw the proposed hike in electricitytariff by Mangalore electricity supply company (Mescom).

In a letter to the Chief Minister, KCCI presidentIsaac Vas said Mescom's decision to increase power tariff byRe 1 per unit was 'shocking.' The move will badly affect the consumers of DK, Udupiand Shivamogga districts, he added.

The increase will be a blow to the MSME sector, thesecond largest employment generator after agriculture and actsas a breeding ground for entrepreneurs and innovators withconsiderable support in strengthening business ecosystems, Vassaid.

In Dakshina Kannada alone, over one lakh people areemployed in this sector while the large industries employ lessthan 10,000 people.

The countrywide lockdown dragged MSME owners,employees and other stakeholders to unexpected repulsions.

After the lockdown period, MSMEs face challengesrelating to debt repayments, wages and salaries and statutorydues.

The MSME sector will completely collapse if the tariffhike is implemented, he said.

The KCCI requested that Mescom reduce theirdistribution losses and overheads instead of putting anadditional burden on the consumers.

MSMEs are struggling to revive operations after thepandemic and the severe slowdown in the economy, Vas said inthe letter.PTI MVG SSPTI PTI