AP ‘powers’ ahead of its neighbours

HYDERABAD: By effecting a moderate hike in the power tariff for the industrial sector, Andhra Pradesh has stolen a march over its neighbouring states and hopes to lure industrialists to the residuary state.

As per the industrial tariff revised by AP effective from April 1, the rate per unit is Rs 6.95, which happens to be lower than Tamil Nadu and Maharashtra, where it is Rs 10.23 per unit and Rs 9.80 respectively. The tariff in Karnataka at present is Rs 6.47 per unit,

but in the revision for 2015-16, expected to take place in the second or third week of April, it is expected to rise by Re 1 per unit. When that happens, AP will be offering power to industries at a much lower tariff rate as compared to its three competitors when it comes to attracting investors.

“With lower power cost, we are confident of attracting more industries and new investments into the state. This, coupled with the assurance of 24×7 power supply, will make AP the most attractive investment destination,” AP energy secretary Ajay Jain told TOI.

According to sources, AP energy officials discovered that, on an average, fuel surcharge, electricity duty and fixed charges accounted for 50 per cent of the industrial units’ power bill. In the rationalization of the tariff that was done subsequently, all these were minimized. This apart, the Re 1 per unit tariff of the ‘Time of the Day’ (ToD) surcharge was not changed. As per the present schedule, two hours in the morning and four hours in the evening have been marked as peak hours when the power consumption is the maximum.

“Including surcharge, electricity duty and ToD charges, AP is now offering power at the lowest rate as compared to most of the industrialized states. The government is also planning to give some more incentives if the industries are set up in the backward north coastal and Rayalaseema districts,” said Ajay Jain.

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