Surat textile units hit with retrospective peak hour power tariffs worth ₹60 crore

Surat: Over 32,000 micro, small, and medium enterprises (MSMEs) in South Gujarat, particularly in the textile sector, have been hit with unexpected electricity charges totaling around ₹60 crore for the past year, a TOI report said.

These additional charges stem from newly enforced peak hour tariffs applied to units with low-tension maximum demand (LTMD) connections, including those operating weaving, rapier jacquard, and embroidery machines.

As per the report, businesses have received supplementary bills averaging ₹18,750, with some exceeding ₹40,000. The charges are calculated at 0.45 paise per unit during peak hours, which are defined as 7 am to 11 am and 6 pm to 10 pm.

Given the fact that textile units operate 24/7, the burden of these new charges is significant, even though the government has allowed affected businesses to pay the dues in interest-free installments. This move followed appeals from the Southern Gujarat Chamber of Commerce and Industry (SGCCI), which has expressed strong dissatisfaction with the new policy. DeshGujarat