Karnataka’s Small Scale Industries Association (KASSIA) has threatened the state government with the closure of small-scale units unless the recent hike in electricity tariffs is withdrawn. The tariff increased by INR2.89 per unit to accommodate the Griha Jyoti scheme. The scheme promised households free power with a cap of 200 units per month, which has already come under fire as the government had promised 200 units of free power per household before the assembly polls. In a press release, KASSIA stated that while it backed the freebies offered by the government to its citizens, the burden should not fall on the industry, which is already carrying the weight of the state. KASSIA also expressed its disappointment that despite numerous appeals, the state chose to increase tariffs without providing any relief to the industrial sector.
KASSIA highlighted that the industry has been struggling with the pandemic-induced economic slowdown and a hike in tariffs would crush smaller enterprises. If their back is broken, there will be dark days ahead. KASSIA urged the government to defer the hikes until normalcy is restored, or at least for two years. Th opposition BJP staged protests in several locations against the tariff increase.
