Patna, March 17: Industry bodies have protested the Bihar State Electricity Board’s (BSEB’s) decision to impose Rs 0.99 per unit fuel surcharge for a span of three years. Businessmen said the board’s move would vitiate the industrial atmosphere in the state.

Last week BSEB announced it would impose the fuel surcharge for December, 2010 and January and February this year. The consumers are supposed to pay the amount in three equal instalments.

The surcharge was imposed because National Thermal Power Corporation (NTPC) hiked its rates due to the increase in the price of coal, which is a key component, and fuel for thermal power plants.

Bihar Chamber of Commerce (BCC), Bihar Industries Association (BIA) and Confederation of Indian Industries organised a news meet today to announce their opposition to the hike.

BIA president Shailendra Sinha said: “It is a very serious issue as the board has imposed a surcharge for the second consecutive time in recent months which shows its autocratic and monopolistic attitude. This will certainly have a negative impact on industries, particularly the fledgling ones.”

BIA vice-president Subhash K. Patwari, members Sanjeev Choudhary, and BCC former president P.K. Agrawal were also present on the occasion. The hike will also have negative impact on investment flow from private entrepreneurs, Sinha said. He added that had the board not shown an apathetic attitude, there would have been 10 times more investment.

Questioning the discrepancy in the rate of electricity purchase, he said NTPC sells electricity at the rate of Rs 2.25 per unit to the board whereas BSEB charges between Rs 3 and Rs 5 from the consumers.

“There is something fishy which only the board officials can explain,” the BIA president said.

BCC president O.P. Sah said the surcharge was the result of the inefficiency of the board, an autonomous body. It should be bifurcated in its own interest.

BIA member and steel manufacturer Sanjeev Choudhary explained how the board was charging a whopping amount from the consumers despite the fact it was purchasing electricity from NTPC at a very low rate. NTPC, in its annual report, showed that during the past six years there was a total increase of Rs 0.48 on account of fuel cost.

“Then what is the basis for imposing the surcharge?” said Choudhary.