Over 100 rice mills owners in West Bengal have individually approached the state electricity ombudsman to address the problem of “disparities” 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 “differential treatment” 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.
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The association said the disparity has developed due to the West Bengal State Electricity Distribution Company’s decision to provide power at “deeply discounted rates” 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 ₹2.50 per unit.
“At 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,” Bengal Rice Mills Association president Sushil Kumar Choudhury told businessline.
“The 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,” 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).
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“So 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,” Choudhury said.
The association has also written a letter to West Bengal Chief Minister Mamata Banerjee, requesting intervention to secure “parity” in power tariffs in rice mills across the state.
Bengal’s rice mills industry has been in a “vulnerable condition” 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.