Hotline: 1800 102 2007
X
Loading
Search Business Opportunities
2014-07-28

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.

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.

Related opportunities
  • About:Grandeur offers the discerning customer a wide range of modular..
    Locations looking for expansion Maharashtra
    Establishment year 1998
    Franchising Launch Date 2015
    Investment size Rs. 1 Cr. - 2 Cr
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
  • Khyati Group is based in Ahmedabad which has its presence..
    Locations looking for expansion Gujarat
    Establishment year 2014
    Franchising Launch Date 2016
    Investment size Rs. 5lac - 10lac
    Space required 1800 - 5000 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Ahmedabad Gujarat
  • Quick Service Restaurants
    About:Started by Vishal Gupta and Hardik Khandwala in Mumbai, WTC..
    Locations looking for expansion Maharashtra
    Establishment year 2016
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
  • Happy Planet is a HUGE play area that grants children..
    Locations looking for expansion Haryana
    Establishment year 1984
    Franchising Launch Date 2010
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 3500 - 6500 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Faridabad Haryana
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities