Bengaluru: As the State is reeling under severe Corona pandemic forcing closure of many of the industries, the hike in power tariff by Karnataka Electricity Regulatory Commission (KERC) is a severe blow to MSMEs which otherwise expected a compensation package from the Government for the lockdown period.

In a statement issued here on Thursday, KASSIA President K.B. Arasappa said even though the lockdown may be lifted in a week or so, it is very difficult for the small and medium scale industries as they have suffered a huge loss over the last few months. At this time of crisis, when the MSMEs are expecting a handsome economic package from the State Government to help revive them, the unexpected decision of the State Government to increase the power tariff has come as a bolt from the blue.

The MSME sector, which provides a large number of jobs, next to the agricultural sector, has been facing a lot of problems these days. Hence the decision to raise the tariff by 30 paise per unit is very objectionable and it will severely harm the MSME sector. Besides, the frequent hike in fuel prices — almost Rs. 10 per litre over the past one month, will spell doom for these units, he noted.

If at all, the State Government wants to help the Medium and Small Scale Industries, it should, at once, take back its decision to raise the power tariff. It should also take steps to cut the cess levied on fuel prices, so that the prices of petrol and diesel is reduced thus helping transportation of goods and vehicles. Such measures will help tide over the present crisis, he said.

He also cautioned that if the State Government does not take steps in these directions, the MSMEs may have to be facing a permanent closure owing to the pandemic.