Port Blair: In a scathing letter to the Lt. Governor of the Andaman & Nicobar Islands, G. Bhasker, Chairman of the Campaign Committee for the Andaman & Nicobar Territorial Congress Committee (ANTCC), raised serious concerns over exorbitant commercial utility rates choking local businesses and the region’s crucial tourism sector.
At the center of the dispute is an astounding electricity tariff of ₹22.50 per unit levied on hotels and resorts—which Bhasker highlights as the highest rate in the entire country. Comparative data submitted in the letter highlights a stark divide between the Islands and mainland India:
Andaman & Nicobar: ₹22.50 / unit
Delhi: ₹4.75 – ₹5.15 / unit
Goa: ₹5.00 / unit
Puducherry: ₹6.00 – ₹7.80 / unit
Karnataka: ₹6.80 / unit
Tamil Nadu (Chennai): ₹10.15 base rate / unit
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Bhasker placed the blame directly on the local administration, alleging that the “high tariff which is not existent in any part in the country is due to the inefficiencies of the Electricity Department, which is taxing the industry for its inefficiency”.
The Congress leader warned that the operational burden goes beyond power costs. Commercial establishments face astronomical water tariffs of around ₹168 per kilolitre alongside inflated construction material costs, severely undermining the Union Government’s “Ease of Doing Business” initiative.
With the island’s economy competing against popular mainland destinations and South-East Asian neighbors, local leaders fear these mounting costs will derail the hospitality sector—one of the territory’s largest source of employment—and jeopardize thousands of local livelihoods.
The ANTCC has formally urged the Lt. Governor, Chief Secretary, and Secretary (Power) to step in immediately, review the tariff structure with regulatory authorities, and introduce a tourism-friendly utility policy to protect local commerce.
