Union Leaders Accuse Yogi Govt of Betraying Weavers Ahead of Eid, Despite BJP's 'Flat Rate' Power Claims

Lucknow: Conceding to the weavers' demands, the Uttar Pradesh government approved a proposal on Wednesday to impose a "flat" electricity rate on powerloom units with connections of up to 5 kilowatts in the state.

The state Cabinet chaired by Chief Minister Yogi Adityanath also passed the proposal of providing a subsidy for the upgradation and modernisation of existing handloom and powerloom units in the state.

Addressing the media in Lucknow, Textile Minister Rakesh Sachan said, "As per the scheme approved by the Cabinet, a flat rate of Rs 300 will be charged for 0.5 horsepower machine in rural areas, while it will be Rs 600 for units in urban areas. Meanwhile, for a 1hp machine, Rs 400 will be charged in rural areas and Rs 800 for urban areas. For those using a connection of more than 5KW, a charge of Rs 700 per horsepower subject to a maximum of Rs 9,100 will be charged."

Starting from April 1, 2023, under the scheme, usage of fans and lights should not exceed 10% of the load.

The government has also decided to give incentives to big powerlooms but only up to Rs 700 per horsepower per month, Sachan said.

To boost the upgradation and modernisation of powerlooms and handlooms in the state, the Cabinet also approved giving subsidies to them.

As per the approved proposal, an 80% subsidy will be given for setting up to two handloom units, while a 75% subsidy for the purchase of equipment for pit looms.

“For setting up powerloom units, a 60% subsidy that is about Rs 1.50 lakh out of an estimated Rs 2.50 lakh will be provided by the government. In the case of semi-automatic powerlooms, Rs 1.80 lakh subsidy will be given for units requiring up to Rs 3 lakh, while in the case of fully automatic powerlooms, a subsidy of 60% i.e. up to Rs 3 lakh for an estimated investment of Rs 5 lakh will be provided,” the textile minister told media.

The move to introduce a flat rate option on electricity bills comes after over three years since powerloom weavers launched an indefinite strike against the sudden surge in power tariffs by the state electricity board across Uttar Pradesh, including Prime Minister Narendra Modi's constituency Varanasi. The weavers had claimed that the rise in tariffs had increased overheads and resulted in the complete shutdown of the textile weaving industry, including the renowned Banarasi sarees.

Approximately 300,000 weavers who ceased operating power looms on September 1, 2020, were participating in an indefinite strike under the Uttar Pradesh Bunkar Mahasabha and Varanasi-based Biradarana Tanzim. Their demands included the reinstatement of a monthly flat rate or fixed-rate electricity bill, and the resolution of electricity dues for the powerloom sector, among other requests.

WEAVERS FEEL CHEATED

However, the legendary weavers' community of Varanasi spoke to NewsClick and said they are not happy with the proposal approved by the Cabinet. They claimed that the government has made it more complicated than before.

Zubair Adil, general secretary of Bunkar Udyog Mandal, speaking to NewsClick, said, "The demand was that the flat rate on electricity should be simplified but the government made it more complicated. Earlier, we would pay Rs 75.50 for a 0.5hp machine but after the new proposal, it will be more costly – Rs 400 in urban and Rs 300 in rural for a 0.5hp machine. Besides, the arbitrariness of the electricity department will increase after this new proposal," he said.

To survive and preserve the art of weaving which they have been doing for generations, the weavers need electricity at subsidised rates, said Adil.

It must be noted here that the power subsidy was introduced by the Mulayam Singh Yadav government in 2006. Weavers would pay less than Rs 150 per month for looms that consume one horsepower of electricity. However, the Yogi-led BJP government in January 2019, ended the flat electricity rate regime for handlooms and directed them to pay according to power consumption. This has raised the bills to around Rs 3,000 per month.

As per the 2006 rules of the electricity department, weavers would pay a flat rate of Rs 42 per powerloom in rural areas and Rs 72 per powerloom in urban areas. For other equipment, Rs 165 per horsepower was provided as per the 2006 order.

According to the new proposal passed by the Cabinet on April 5, the handloom owners will have to pay Rs 300 instead of Rs 42 in rural areas and Rs 600 instead of Rs 72 in urban blocks.

Accusing the BJP of taking “fake credit” ahead of Eid, Iftekhar Ahmed Ansari, president of the Uttar Pradesh Weavers' Associationm told NewsClick, "The government has increased the rate six times. The weaver who till now used to pay Rs 42 for a powerloom will now pay Rs 300 in rural and Rs 600 instead of Rs 72 in urban areas after the new proposal. Apart from this, the usage of fans and lights will be more than 10%. This proposal would be the last nail in the coffin of powerloom, the whole weaver community is feeling cheated and betrayed."

The union president added, “When a weaver who earns barely Rs 1,500 from a powerloom, pays Rs 600 for electricity apart from the penalty and other expenses of the loom, what will he be left with?”

"For the last six years, we have been demanding a flat rate for electricity. The government wants us to remain weavers not to grow our business. In August 2020, when we called for an indefinite strike, a delegation of the agitating weavers met N Sehgal, then additional chief secretary of the Ministry of Micro, Small and Medium Enterprises (MSME), at the protest site and he assured to fulfil our demands in 15 days but it never happened," Ansari alleged.

The Yogi Adityanth-led BJP government ended the flat electricity rate regime after it came to power in 2019. Since then, uncertainty has loomed large over powerlooms. The deadly second wave of the COVID-19 pandemic wreaked havoc on weavers; the 5% hike in customs duty on silk in the Union Budget (2021) was the final nail in the coffin for the Banarasi sari and textile weaving industry.

"During our discussions with the government amid the strike, we agreed that the government has every right to increase the flat rate as it has not been increased over the last 14-15 years, but they should not do away with the subsidy altogether. We have been assured that no change in the rate will take place and we will pay according to the 2006 subsidy only, but a six-fold hike is like the BJP government stabbing the weaver community in the back," the union leader asserted.

There are about 2,54,000 powerlooms in the entire state, out of which only 20,000 have 1hp capacity, while the majority of them are with 0.5hp powerlooms, according to Ansari.