CNCI calls for low cost power

The Ceylon National Chamber of Industries (CNCI), the country's premier industrial chamber has called upon the government to slash electricity rates to a reasonable amount. The staggering electricity bill has crippled the industrial sector badly.

The sudden 38 percent surge in electricity rates has hampered activities and growth of over 80 percent of the industries of which 30 percent are in the process of halting operations, said Chairman CNCI, A.K. Ratnarajah addressing the media on CNCI's proposals for the 2007 Budget.

The Ceylon Electricity Board (CEB) incurs a massive annual loss due to its inefficiency and mismanagement. The consumers cannot be victims of the CEB's poor management by having to pay a bill which is beyond their means.

Electricity rates have been increasing frequently and in a haphazard manner where the public have to bear the brunt, he said. Due to the increase in electricity rates industries have to pay an additional Rs. 7 billion annually when usually it is around Rs. 20 million. The cost of electricity will definitely affect the production cost in a big way. Small, medium and new industries cannot survive due to the escalating cost of power.

The CNCI has requested the government to provide low cost indigenous power to the industrial sector which plays a dominant role in the growth of the economy. The chamber has urged the government to speed up the work of the coal power facility in Norochcholai while reducing environmental pollution. Dependence on costly thermal power will burden the industry and have a ripple effect on the economy, Ratnarajah said.

CNCI Past Chairman, Rangith Hettiarachchi said the development of infrastructure facilities is pivotal for growth to take place. The CNCI has proposed to the government to give priority to develop the road and railway network. The construction of highways needs to be expedited.

The construction of the Colombo Katunayake Highway has not materialised though we have been talking much about it. There cannot be any progress in the industrial sector which depends heavily on efficient transportation. A poor road network will be time consuming and result in low productivity.

The theme of CNCI's Budget proposals is increasing productivity and competitiveness. The CNCI recognises the urgent need to commence work on the development of the Colombo South Harbour to maintain the hub status.

The Industrial chamber has proposed the setting up of industrial zones in each district and in suburbs of provincial towns.

Under invoicing of goods continue to take place at an alarming proportion. While it denies the state its legitimate dues by way of taxes, it affects the competition of the local industries. The chamber reiterates that wherever possible the Maximum Retail Prices (MRP) should be marked by the manufacturer before shipping it to Sri Lanka.

The Chamber hopes that the government will give due consideration to sustain 8 percent growth achieved during the first half of this year. Though it is commendable, there is a need for a higher growth if poverty is to be reduced, said the past chairman.

(LF)