FIA, in a release, has stated that the increase in security deposit rate, equivalent to 1.5 months' estimated consumption of energy effective from March 1, is as high as six to 20 times the existing rates. The present security rates are sufficient and there is no need to increase it, it added.

FIA has submitted a memorandum to the Chief Minister, Industries Minister, Energy Minister and GEB chairman appealing for immediate interference in the matter.

It said: "When the government is fully aware about the economic recession and worst financial conditions of the industry and has announced different schemes for rehabilitation of sick units...taxing the industry at this crucial juncture is illogical and unjustified".

The government's rehabilitation schemes include modernisation and technology upgradation by providing subsidies, financial assistance, relaxation on payment of installment of interest and term loan and other taxes in open house meets, it said.

FIA has urged the government to review GEB's resolution and keep the implementation of the circular in abeyance till the matter is re-examined and representatives from industries are heard.

It said the rate of revised security deposit is based on charges of number of units per KW and per HP against the existing rate of fixed charges per HP. "Such a high increase...will bring more financial load to the industries in the State at a time of economic recession and financial constraints".

It said the GEB's latest move will make them sick and may lead to their closure in the long run causing unemployment and loss of revenue to the government Exchequer, it added.