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Reduce energy cost, increase ease of operations, bizmen ask Gujarat government

GCCI suggested removal of such bottlenecks to enable businesses operate with ease in the state

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Businessmen from state have asked the state government to ensure that there is no unnecessary financial burden on them in matters related to electricity. They also said that processes should be streamlined to ease operations.

In a letter written to the state government, Gujarat Chamber of Commerce and Industry (GCCI), the apex body for trade and industry in the state, said that the practices adapted by electricity companies are increasing the cost burden, which many small businesses find hard to absorb. GCCI suggested removal of such bottlenecks to enable businesses operate with ease in the state.

Shailesh Patwari, president of GCCI said that "This results in additional capital expenditure of about 12-15 lakhs and complicates matter. Most small businesses do not even complain. But this erodes the Ease of Doing Business environment in the state, especially at time when competition in cut throat," said Patwari. GCCI suggested that the practice of Open Access be practically revived in the state. As per the Open Access Policy, industry players can buy electricity from outside Gujarat. Players say that the difference in price is often about Rs2 per unit of electricity.

However, the permission for Open Access is often denied on the grounds that the distribution network is not equipped to handle additional load. Ïf we seek electricity under Open Access we are denied saying that the distribution lines cannot bear the load. However, if we seek additional electricity in same quantity, it is not denied," said an industrialist from Ahmedabad. New buyers of land are also told to pay the electricity dues of previous occupants, whose properties were auctioned by the government. Players question the rationale behind the moves as all the dues are taken care of at the time of auction.

COST SURGING

  • In case of request for High Tension lines, the entire expenditure for last mile connectivity and laying down necessary infrastructure is to be borne by the players, which increases the capital cost.
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