SME Times News Bureau | 21 Nov, 2020
The government proposes to put in place dedicated power distribution
channel for industries in the manufacturing zones in order to provide
competitively priced electricity to units giving make in India push.
Sources
said the plan is to offer power distribution rights to units in such
zones to a private sector entity. This entity will then procure and
supply power to industrial units locating manufacturing hubs offering
competitive tariff.
As part of Atmanirbhar Bharat initiative
Power ministry has proposed power equipment manufacturing hubs in
different states. These hubs are proposed to be set with deemed
distribution status. This would allow these zones to get a dedicated
power supply independent of state utilities and charges build into the
system for such supplies.
"This is an excellent idea that would
help industries get competitively priced power. The challenge would come
from states as it needs to be seen how they react to the proposal that
had the potential to take out sizeable portion of their revenue
generating power customers," said a power sector analyst asking not to
be named.
The power supplied to industry by state discoms is
loaded with cross subsidy surcharges that makes electricity tariff for
industrial tariff expensive as compared to household or other subsidised
consumers. Industry also get power supply through open access route
directly for their consumption from generators but such arrangement
attracts wheeling and open access charges that adds to the cost.
An
independent power supply arrangement could reduce all these charges
where tariff would be determined based on cost of procurement by
distributors.
