In a letter to the agitating units, chairman of the board, Asoke Basak, said that "there is some misunderstanding about the tariff revision of MSEB and the hike is moderate."

The increase in tariff is only 7.06 per cent as compared to the previous 17.16 per cent in July 1996, said Basak.

There is no hike for the domestic category, constituting 63 per cent of users, which consumes upto 50 units per month, he added.

For those using 51 to 100 units a month, there is a small reduction in tariff because of rationalisation. Only around 20 per cent of consumers have to pay more than 10 per cent over the previous charges, Basak said.

In the case of commercial consumers, those in the slot of 100 to 200 units per month have to payless than the earlier tariff. When consumption exceeding 200 units, the tariff increase is up to 14 per cent, he said.

Industry associations, however, believe that if Maharashtra State Electricity Board works efficiently it would not need to increase tariff. It should collect all arrears, check transmission and distribution losses and theft of power.

They have also accused MSEB of committing payment of a high electricity price to multinational power companies in the state.

The industries have formed a apex co-ordination committee to jointly fight against the issue and decided to observe Black Day on Monday, December 14, the first day of the winter session of the state assembly.

These organisations have demanded withdrawal of the hike in tariff.In his statement, Basak has said that recovery of arrears and controlling energy thefts are MSEB's top priority. "We have initiated stringent action for recovery of arrears from all consumers," he said.

The organisations which are part of the committeeincludes the Indian Murchants Chamber, the Maharashtra Chamber of Commerce & Industry, All-India Association of Industries, Marathwada Chamber of Commerce and Industries, Thana Belapur Industries Association, Thane Small Scale Industries Association and others.