Hubballi trade chamber-sponsored bandh against power tariff hike evokes partial response in Karnataka

Bengaluru and industrial hubs in surrounding areas did not participate in the protests as chief minister and deputy chief minister invites them for talks.

ByBellie Thomas

Published Jun 22, 2023 | 6:59 PMUpdatedJun 22, 2023 | 6:59 PM

KCCI in Hubbali protesting against power tariff hike

The statewide bandh called by the Hubballi-based Karnataka Chamber of Commerce and Industry (KCCI) went off peacefully without affecting normal life in the state on Thursday, 22 June.

The KCCI had called for a voluntary shutdown of businesses, to protest against the recently-announced “abnormal” hike in power tariffs.

Traders and small-business owners took out protest rallies in several parts of Karnataka, specifically in Hubballi City and Dharwad, even as the Medium and Large Scale Industries Minister MB Patil appealed to them to cooperate with the state government.

He asserted that the power tariff was increased by the Karnataka Electricity Regulatory Commission (KERC) and not the state government.

Related: Electricity to cost more in Karnataka in decision okayed by BJP

Cascading effect of tariff hike

Meanwhile, the Karnataka State Rice Millers’ Association (KSRMA) has hinted that rice prices may be increased by about ₹3 to ₹4 per kg.

“It is not us who are increasing the price. The power tariff and paddy prices have gone up. The hike will be by ₹3 to ₹4 per kg across the fine rice varieties,” KSRMA general secretary S Shiva Kumar said.

The protest came even as the state government started the registration process earlier this week for the Gruha Jyoti scheme, offering up to 200 units of free electricity for domestic connections.

Days after announcing the launch of the “Gruha Jyoti” scheme, one of the poll guarantees of the Congress government offering free domestic electricity up to 200 units, the power tariff was increased by ₹2.89 per unit.

The KERC said the hike was due to fuel and power purchase cost adjustment (FPPCA) and arrears from April.

Also read: Karnataka delays application acceptance for Gruha Lakshmi Yojana

Protest voluntary, says KCCI

KCCI members protest in Hubbali-Dharwad against power tariff hike on Thursday

KCCI members protest in Hubbali-Dharwad against power tariff hike on Thursday. (Supplied)

“The protest was voluntary and there was no force or compulsion on any industry associations, trade bodies, etc. We have also ensured that essential services were not affected,” KCCI president Vinay J Javali told South First.

“The 30 to 70 percent hike in electricity tariff has hit all segments of traders hard, including big industries. We received an excellent response on Thursday from all traders and industrialists. More than 7,000 people protested in Hubbali, while around 1,500 people turned out in Dharwad,” he said.

Javali said the KCCI was not opposed to doling out freebies or the Congress government.

“Even if the BJP government had hiked the power tariff, we would have protested. The protest was to make the government aware of our pain,” he added.

Related: Siddaramaiah to call industrial bodies to discuss power tariff hike

Support from 25 bodies

The KCCI leader claimed that 25 chambers of commerce across the state supported the bandh.

Soon after the KCCI called for the shutdown, district chambers in Gadag, Bijapur, Raichur, Mysuru, Davangere, Koppal, Karwar, Belagavi, Bidar, Shivamogga, Kolar, Mandya, Chikkamagaluru, Chitradurga, Hassan, and many other districts, pledged support.

KCCI office bearers handing over memorandum to government officials

KCCI office bearers handing over a memorandum to government officials. (Supplied)

“We made several attempts to inform the government about the impact of the increase in electricity tariff for more than a week. However, no solution was offered either by the officials or from the government,” KCCI vice-president Sandeep Bidasaria said in a statement issued to the media.

He hoped that the bandh would make the government take notice of the issue and respond accordingly.

Industrialists and traders took out rallies in several district quarters, raising slogans demanding the government roll back the hike.

Hubballi-Dharwad, Ballari, Vijayanagar, Sirsi, Karwar, Haveri, Ranebennur, and several other districts witnessed protest rallies.

In Belagavi, a large number of traders and small and micro industry owners marched to the office of the deputy commissioner with banners and placards. The office-bearers handed over memoranda to the tehsildhar and the deputy commissioner.

A protester in Belagavi, a city bordering Maharashtra, claimed that several industries were planning to shift to the neighbouring state due to the drastic increase in tariff.

Several shops remained closed, and small industries stopped production in several parts of the state in response to the bandh call. In Bidar, many shops downed shutters and the main market wore a deserted look on Thursday.

Related: Power supply firm may pull the plug on Kannada University

More tariff hikes? 

In an attempt to make the protestors see reason, Minister Patil said, “First of all, the power tariff has not been hiked by us. Karnataka Electricity Regulatory Commission, an autonomous body, has increased the power tariff before our government came to power. So we have no connection with the power tariff hike.”

According to him, Chief Minister Siddaramaiah, too, has stated that the power tariff hike cannot be rolled back.

However, Patil told reporters that he would discuss the matter with Siddaramaiah and Energy Minister KJ George.

“I appeal to everyone, the industries and others, to please cooperate. KERC keeps revising prices from time to time. It follows a procedure. It is not done by the government. They revised the tariff now and will do it in future as well,” the minister said.

Amid speculations that the Bangalore Water Supply and Sewerage Board (BWSSB) was also planning to revise the water supply charges, an official said a BWSSB team apprised Deputy Chief Minister DK Shivakumar, who holds the Bengaluru Development portfolio, on the issues.

“We told the DCM that we have not revised the water supply charges for the past 10 years and it’s about time to increase the rate given the increase in input costs. The decision has not been taken yet. The matter is under consideration,” the official said.

Government calls for talks

Meanwhile, the Federation of Karnataka Chambers of Commerce & Industry (FKCCI), which has significant clout among traders and industrialists in Bengaluru and surrounding areas, did not participate in the bandh. It called off the bandh after a meeting with the government.

Offices of the chief minister and deputy chief minister have invited the office bearers of all industry associations to discuss the power tariff hike and possible solutions on Friday, 23 June.

FKCCI president Gopal Reddy said the body would seek a six to nine percent reduction in electricity tax and a similar cut in power tariffs for MSMEs in both trade and service sectors.

“We have been invited for a meeting with The chief minister and deputy chief minister on 23 June (Friday), and further course of action would be decided after the talks,” Reddy told South First.

The Karnataka Small Scale Industries’ Association (KASSIA), too, stayed away from the bandh. Its president KN Narasimhamurthy said the association’s stand would be finalised after the meeting with the chief minister and deputy chief minister.

The member establishments of the Bruhath Bangalore Hotels Association, too, did not join the bandh.

“We are also burdened by the electricity charge hike. However, we will wait for the next (second) month’s bill to decide on whether to protest or not. Moreover, the newly elected KMF (Karnataka Milk Federation) president has hinted at a possible hike in milk prices; so have the rice traders. If the prices of milk and rice are increased, then we will be compelled to increase our rates,” Association president PC Rao told South First.

Peenya Industries Association (PIA) President Manjunath H also told South First that all industries in Peenya under the association functioned normal. “There is no bandh for us. We have also been invited to the meeting and we will take a call after what is being decided in the meeting,” he said.

(With PTI inputs)