CHENNAI: Ice manufacturers catering specifically to the seafood industry are wary of the proposed revision of electricity tariff by Tangedco and want a separate category for them as introduction of peak hour consumption for low tension supply connection and nearly doubled fixed charges of high tension connection in the existing categories would destroy their already volatile business.
Currently, the ice manufacturers for the fishing industry are categorised under MSME medium category and are charged under IIIB slab for low tension (LT) connection and IA slab for high tension (HT) supply. For the LT connections, they are currently charged Rs 35 per kW as fixed charges irrespective of the load and consumption charges are Rs 6.35 per unit. However, in the proposed revision, the fixed charges for the connections with a load between 50 kW to 100 kW is Rs 325 and for those with a load above 100kW, the fixed charges are Rs 600, which are nearly 10 and 20 times of the present charges, respectively. Also, the peak hours consumption charges have been proposed to be introduced to different categories, so the consumers under these categories will have to pay 25 per cent extra for the electricity consumption from 6.30 am to 10.30 am and 6 pm to 10 pm.
J Chandrasekaran, secretary to Chennai Fishing Harbour Ice Manufacturers Welfare Association, says, ice manufacturers for seafood industry is directly dependent on fishing pattern, which is volatile. "There is a blanket ban on fishing for two months during summer, which is strictly followed across the east coast. And during the monsoon, fishing is affected due to the rough condition. So, we have business only for eight months and the peak season for us is soon after the ban period. However, irrespective of the demand, we will have to keep manufacturing ice as we can't keep the machines idle. So, introduction of peak hour charges will burden us further. Also, if the fixed charges are doubled as proposed, we have to shut the factories and there is no other option," he says.
In Chennai fishing harbour alone, there are about 18 ice factories producing ice for fishermen going to deep sea for fishing for days together in mechanised boats. They also sell the ice to be used in the fish market until it reaches the consumers. There are about 40 such plants across the coast in Chennai, Tiruvallur, Kancheepuram and the number is roughly about 400 across the state.
Joseph Jegan Peter Paul of Kanniyakumari, who owns ice plants, say they have already been finding it difficult to run the factories due to the increased diesel prices as the water had to be fetched to the plants from afar. "Our trucks are often caught for overloading and we end up paying fines. In the fishing industry, the cost of other items such as nets keep increasing, but the price of ice alone is on the decreasing trend. We used to sell the 150 kg block for Rs 300, but it is now sold for just Rs 210. Every year, the number of ice plants being shut is on the rise and the proposed electricity tariff revision will bring the curtains down once for all," he says.
Chandrasekaran says if they increase the price of the ice, it will result in the rise of prices of fish for the end-consumers. "Fish will no longer be poorman's food. Also, it will also hugely impact the sea export business too as cold storages too will have to pay up extra for the electricity and there is a danger of the business shifting to other coastal states such as Kerala and Gujarat," he says.