In a memorandum submitted to the Administrator, the three Associations have pointed out that a 19 percent increase in power tariffs will affect the ``export competitiveness'' of their industries which are already battling recession. Many industries have come to the UT due to lower power tariffs and sales tax exemption, though the area remains relatively backward in infrastructure facilities.

In many of the industries (in Silvassa and Daman) the electricity bill accounts for 45 per cent of the production cost and an increase of 19 per cent is likely to increase the cost of production by 3 per cent, the Associations said, pointing out that even in the USA, electricity rates are 4 cents per unit, substantially lower than the proposed rate in Dadra and Nagar Haveli and Daman and Diu. The Associations have claimed that a low energy cost had helped USA to invest in automation.