Surat MSMEs Face Crushing New Electricity Charges

Surat, Gujarat – A devastating blow has been dealt to the backbone of South Gujarat’s industrial landscape, particularly the vibrant MSME hub of Surat. Power companies, including DGVCL, have initiated a new, crippling “Time of Use” (ToU) charge, adding 45 paise per unit during peak hours for Low Tension (LT) line users. This move, already appearing in recent bills for weaving units in Surat, threatens to cripple small businesses and render them uncompetitive.

For the past six months, small industrial units, from intricate weaving operations to embroidery and manufacturing, have been silently burdened by this additional charge for electricity consumed between 7:00 AM to 11:00 AM and 7:00 PM to 10:00 PM. These very hours represent the core production window for Surat’s prolific weaving industry, meaning the additional cost directly inflates their operational expenditure.

“This decision will deal a big blow to the weaving industry of Surat. The backs of small weavers will be broken,” warned Ashok Jirawala, Vice President of the Southern Gujarat Chamber of Commerce. Recognizing the immediate and severe threat, a delegation led by Jirawala urgently met with Gujarat’s Additional Chief Secretary (Energy and Petrochemicals) S.J. Haider.

The Chamber vehemently argued that instead of focusing on ensuring quality power supply, electricity companies are exploiting perceived shortfalls by imposing this exorbitant peak-hour charge on LT line users. This stands in stark contrast to the substantial power subsidies enjoyed by the powerloom industry in neighboring Maharashtra, which is already luring Surat’s textile businesses to zones like Navapur Industrial Zone. The 45 paise per unit peak hour charge on LT lines is deemed “unfair” for these small units, directly escalating the cost of cloth production and eroding their ability to compete in the market.

The move by power companies risks an exodus of smaller manufacturers, pushing them to states with more favorable policies or, worse, forcing them to shut down. The long-term implications for employment and the regional economy of South Gujarat could be severe. The industry now awaits a decisive response from the state government to avert this impending crisis and ensure the survival of its vital MSME sector.