1 week ago
West Bengal Industrial Power Tariff Hike Limited to DVC Area
West Bengal plans to raise electricity prices for some factories starting September 1.
The power company says the increase will affect only factories in the Damodar Valley Corporation area.
A 33 KV connection would cost ₹1 more per unit, while an 11 KV connection would cost ₹1.5 more.
Steel groups say this could make it more expensive to produce steel.
They want the increase cancelled.
The electricity company says its prices will still be lower than the Damodar Valley Corporation’s prices.
The groups also asked for more coal and iron ore supplies.
Government officials said they received the request but did not promise to cancel the increase.
WBSEDCL said the proposed tariff increase from September 1 applies only to industrial consumers in the Damodar Valley Corporation command area.
The increase is ₹1 per unit for 33 KV connections and ₹1.5 per unit for 11 KV connections.
The 33 KV tariff would rise from ₹4.70 to ₹5.70 per unit, according to the Steel Re-Rolling Mills Association of India.
WBSEDCL said the revised rate would remain ₹1 per unit below the Damodar Valley Corporation tariff.
Steel industry associations urged the government to withdraw the increase, citing higher production costs and investment concerns.
- Who
- West Bengal State Electricity Distribution Company Ltd, steel industry associations, and state government representatives.
- What
- A proposed industrial electricity tariff increase in parts of West Bengal has prompted objections from steel manufacturers.
- Where
- The Damodar Valley Corporation command area in parts of West Bengal, including areas of Burdwan, Howrah, Hooghly, and Bankura.
- When
- The increase is scheduled to begin September 1; the report was published August 25, 2026.
- Why
- WBSEDCL says the revised rates will remain competitive, while steel associations say higher electricity costs could affect production and investment.
Industry objections
WBSEDCL justification
Impact of the increase
Industry objections
The Steel Re-Rolling Mills Association of India and the West Bengal Sponge Iron Manufacturers Association say higher power costs could raise production expenses and weaken efforts to attract investment.
WBSEDCL justification
WBSEDCL says the proposed rates will remain competitive, including a ₹1-per-unit advantage over the Damodar Valley Corporation tariff.
Requested relief
Industry objections
The steel associations have sought a complete waiver; association sources also claimed ministers indicated the increase would not exceed 50 paise per unit.
WBSEDCL justification
Industry Minister Tapas Roy said the request was forwarded to Chief Minister Suvendu Adhikari but said the government had made no assurance to the industry.
Supply support
Industry objections
The steel delegation requested annual supplies of 10 million tonnes of high-grade coal and 15–20 million tonnes of iron ore from specified public-sector sources.
WBSEDCL justification
The articles report the requests but do not state that the government or suppliers agreed to them.
Key facts
- Effective date
- September 1
- Affected consumers
- Industrial consumers in the Damodar Valley Corporation command area
- 33 KV tariff change
- From ₹4.70 to ₹5.70 per unit
- 33 KV increase
- ₹1 per unit
- 11 KV increase
- ₹1.5 per unit
- Tariff comparison
- WBSEDCL says its revised tariff will remain ₹1 per unit below the Damodar Valley Corporation rate
- Industry requests
- A tariff waiver, 10 million tonnes of high-grade coal, and 15–20 million tonnes of iron ore fines and lumps
Quotes
Sumit Mukherjee
Director (Distribution) of West Bengal State Electricity Distribution Company Ltd
“At present, the rate is ₹4.70 for 33 KV, which would rise to ₹5.70 per unit, an increase of more than 20 per cent. This tariff was fixed only two to three years back”
thehindubusinessline.com
“We have received their prayer and forwarded it to Chief Minister Suvendu Adhikari. But, there was no assurance from our end to the industry”
thehindubusinessline.com
Sources
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