Waiver of Electricity Charges for MSME’s in Karnataka

Government of Karnataka has issued an Order dated 8th April 2020, thereby providing relief to electricity consumers especially MSME and Non-MSME units in the Industrial Sector, in view of the unprecedented crisis due to COVID-19.

As per the said Order, Demand/Fixed Electricity Charges shall be waived for MSME’s for the months of April and May 2020. For industries other than MSME’s, payment of Demand/Fixed Electricity Charges shall be deferred till 30/06/2020.

The Order further states that consumers paying electricity bills promptly, shall be entitled to rebate of upto Rs. 10,000/- for LT Consumers and upto Rs. 1,00,000/- for HT Consumers based on days in which payment was made from the issuance of electricity bills. The time for imposition of interest on delayed payments, has also been extended from 15 days to 30 days. The Order also provides for payment of electricity bills in instalments, over a period of 3 months, on payment of interest.

Most importantly the Order observes that there shall be no disconnection of supply for non-payment of dues for the months of April and May 2020 till 30/06/2020.

Karnataka Government is seeing this as a measure for the Industry to mitigate the unprecedented economic crisis due to the nation-wide lockdown. Invariably other States should take a leaf out of this Karnataka Government’s book with regard to such initiatives.

Click here for the Karnataka Government order.