Welcome Guest

Businessex.Com
Home News DVC tariff hike to impact West Bengal SMEs

DVC tariff hike to impact West Bengal SMEs

Tags: Damodar Valley Corporation, west bengal, sme, msme, power tariff, electricity, coal

July 28, 2014 | COMMENTS ( 0 )

DVC tariff hike to impact West Bengal SMEs

Damodar Valley Corporation's (DVC) proposal for a sharp hike in power tariff for the current fiscal and the next two will impact SMEs - mainly the iron and steel sector of West Bengal.

 

"The Asansol-Durgapur belt is a hub of medium-sized iron and steel companies and the moderate DVC tariff helped the industry at difficult times. But with 50 per cent hike in proposed tariff it will definitely be a major blow to industry," Steel Rolling Mills Association officer Ramesh Jain said.

 

The iron and steel industry is under pressure due to the lower demand in the past few years due to slowdown. But just when demand had begun to pick up, any hike in input cost will put the industry in difficulty, he said.

 

DVC officials said 25 per cent of its revenue from power sales is from steel, coal and railways, while another 25 per cent from general industry.

 

Power utility Dishergarh Power Supply Corporation (DPSC) also buys bulk of its power for distribution from DVC.

 

"Any hike in power tariff by DVC will definitely impact our power cost to consumers," DPSC, Corporate Affairs President, Somesh Dasgupta said.

 

DVC in its multi-year tariff petition to West Bengal Electricity Regulatory Commission (WBERC) has demanded an average tariff of Rs 6.38 a unit for 2014-15, a jump of 51.5 per cent compared to the 2013-14 tariff of Rs 4.21 per unit, company sources said.

 

The tariff petition had been filed with the WBERC for three years, 2014-15, 2015-16 and 2016-17.

 

The DVC in its petition had sought Rs 7.10 a unit for 2015-16, a rise of 11.2 per cent over 2014-15. While, for the third year it had demanded a tariff of Rs 8.81 another 24 per cent rise over 2015-16.

 

If the terminal year 2016-17 tariff was compared with the last fiscal (2013-14) rate then it was more than 100 per cent rise in tariff for DVC's power consumers, they said.

 

The reasons cited by the PSU to justify its hike include increase in coal prices, proposed escalation of fixed cost of DVC generating stations and T&D system and phasing out of some old power plants during 2016-17.

 

Meanwhile, the DVC tariff for 2009-10 to 2013-14 has not yet been cleared by WBERC and provisional current billing rates were based on Central Electricity Regulatory Commission order.

Please add your comment

Rating
Not readable? Change text.
Enter the characters as seen on the image (case insensitive)
  Notify me of followup comments via e-mail   Subscribe for daily newsletter

Other NEWS

Delhi based startup i2e1 raises $5,00,000

Delhi based startup i2e1 raises $5,...

December 10, 2015

Delhi-based i2e1, a smart network player platform which aims to provide low-cost and free internet to consumers and actionable ana....

Cab aggregators collaborate with state governments to boost entrepreneurship

Cab aggregators collaborate with st...

November 06, 2015

Ola and Uber, cab aggregators have signed agreements with Rajasthan government for skill development and creation of entrepreneuri....

Phase II of startup incubator T-Hub to be operational soon

Phase II of startup incubator T-Hub...

November 04, 2015

Telangana government is planning to expand T-Hub, its ambitious incubator programme, in its second phase with about Rs 150 crore i....

Sabse Technologies receives investment from Ratan Tata

Sabse Technologies receives investm...

November 04, 2015

Global telecom carrier, Sabse Technologies Inc, started by Hotmail Founder Sabeer Bhatia today announced that Tata Sons' Chairman ....

Mobile startup BlackNGreen seeks international expansion

Mobile startup BlackNGreen seeks in...

November 02, 2015

Buoyed by a strong demand for value added services, mobile startup BlackNGreen is eyeing revenue of Rs 350 crore in the next one y....

Startups seek better future under Hay Group's programme

Startups seek better future under H...

October 30, 2015

Global management consultancy, Hay Group will help 100 selected entrepreneurs transform their startups into successful companies o....

Quintype raises USD 3.25 million for product enhancement

Quintype raises USD 3.25 million fo...

October 27, 2015

Quintype, a data-driven publishing company raised USD 3.25 million to enhance product and business development. ....

Hospitality aggregator startup Qik Stay raises $250K

Hospitality aggregator startup Qik ...

October 27, 2015

Delhi-based Qik Stay, a hotel branding and aggregator startup, has raised $250K in seed round of funding from venture capital firm....

Milk Mantra targets a turnover of Rs 150 crore this fiscal

Milk Mantra targets a turnover of R...

October 26, 2015

Odisha-based startup dairy firm, Milk Mantra is targeting a turnover of Rs 150 crore this fiscal.....

Vista Rooms creates app on Instagram, targets tier II & III cities

Vista Rooms creates app on Instagra...

October 23, 2015

Mumbai-based online budget accommodation aggregator, Vista Rooms has created an app-like experience on Instagram where travellers ....

Jiyo Natural receives funding from Indian Angel Network

Jiyo Natural receives funding from ...

October 23, 2015

Indian Angel Network (IAN) has invested an undisclosed amount in Bengaluru-based consumer health food startup, Jiyo Natural.....

​​Vodoo raises USD 1 million from SAIF Partners

​​Vodoo raises USD 1 mi...

October 15, 2015

Deals and price comparison application, Vodoo has raised USD 1 million (around Rs 65 lakh) from SAIF Partners in a seed funding ro....

IBM launches public data centre in Chennai, partners with Nasscom to boost start ups

IBM launches public data centre in ...

October 15, 2015

Technology giant, IBM today launched public data centre in Chennai to tap into growing demand from financial services and governme....

For Nasscom, PPP will boost startups in India

For Nasscom, PPP will boost startup...

October 14, 2015

In the wake of some reservations over the central government creating startup funds, Nasscom's "10,000 startups" Vice President, R....

WalmartLabs to seek partnership with Indian startups

WalmartLabs to seek partnership wit...

October 14, 2015

WalmartLabs, the digital arm of US-based retailing major Walmart Stores, is scouting for startups in India for partnership and wor....