Over 100 rice mills owners in West Bengal have individually approached the state electricity ombudsman to address the problem of âdisparitiesâ in power tariffs for the mills across the state after appeals to the West Bengal Electricity Regulatory Commission have so far yielded no results.
According to the Bengal Rice Mills Association, the prevailing âdifferential treatmentâ in respect of the power tariffs applicable to the mills is creating economic differentiation on the basis of location, though market and other operational factors remain the same. Electricity cost is the main constituent of the total cost for a rice mill.
The association said the disparity has developed due to the West Bengal State Electricity Distribution Companyâs decision to provide power at âdeeply discounted ratesâ to the industrial consumers of the DVC command areas of Pashchim Bardhaman (West Bardwan), parts of Purba Bardhaman (East Bardwan), Bankura, Purulia and Hoogly. As a result, the difference between power tariffs applicable to the mills situated in the rest of Bengal and the mills situated in the DVC command area is to the tune of â¹2.50 per unit.
âAt present there are around 1400 rice mills across the state. And out of that nearly 100 mills are availing the reduced tariff by virtue of their location in DVC command area. This is creating a sense of discrimination among rice mills across the state,â Bengal Rice Mills Association president Sushil Kumar Choudhury told businessline.
âThe operating market area for rice mills across the state is common. Hence a substantial difference in the power cost has led to serious consequences for the mills which are operating at a higher cost leading to uneven competition in the market,â Choudhury pointed out.
Raising its concerns, the association approached the West Bengal State Electricity Distribution Company (WBSEDCL), Power Department of the West Bengal Government and West Bengal Electricity Regulatory Commission (WBERC).
âSo far we have received no responses from WBSEDCL, the state power department and WBERC. Following that more than 100 rice mill owners have individually approached the Office of the Ombudsman, seeking immediate action to bring parity in respect of uniform tariff,â Choudhury said.
The association has also written a letter to West Bengal Chief Minister Mamata Banerjee, requesting intervention to secure âparityâ in power tariffs in rice mills across the state.
Bengalâs rice mills industry has been in a âvulnerable conditionâ and many of the mills are heading towards closure due to increasing bank loans and deteriorating financial conditions due to the current market scenario, Choudhury added.
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