KCCI writes to CM seeking withdrawal of Mescom’s proposed power tariff hike

Mangaluru: The Kanara Chamber of Commerce and Industry (KCCI) has requested Karnataka Chief Minister B S Yediyurappa to withdraw the proposed hike in electricity tariff by Mangalore electricity supply company (Mescom).

In a letter to the Chief Minister, KCCI president Isaac Vas said Mescom’s decision to increase power tariff by Re 1 per unit was ”shocking.”

The move will badly affect the consumers of DK, Udupi and Shivamogga districts, he added.

The increase will be a blow to the MSME sector, the second-largest employment generator after agriculture and acts as a breeding ground for entrepreneurs and innovators with considerable support in strengthening business ecosystems, Vas said.

In Dakshina Kannada alone, over one lakh people are employed in this sector while the large industries employ less than 10,000 people.

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

After the lockdown period, MSMEs face challenges relating to debt repayments, wages and salaries and statutory dues.

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

The KCCI requested that Mescom reduce their distribution losses and overheads instead of putting an additional burden on the consumers.

MSMEs are struggling to revive operations after the pandemic and the severe slowdown in the economy, Vas said in the letter.