Patna, Dec 7 (IANS): The Bihar Chamber of Commerce and Industries has urged the state's power ministry to reduce electricity tariff in order to create a conducive environment for industrial growth.

PK Agrawal, president of the body, has requested Bihar power minister, power secretary, power holding company, north and south Bihar power distribution companies to reduce the tariff, and make it similar to neighbouring West Bengal and Jharkhand.

Agrawal pointed out that there is huge difference in tariff between Bihar and its two neighbouring states.

"Power discoms under Damodar Vally Corporation (DVC) regions are charging just Rs 3.5 per kilowatt for commercial electricity. In a similar pattern, West Bengal and Jharkhand have fixed the rate in other areas. Compared to this, the rate in Bihar is Rs 8.5 per kilowatt. As a result of this, industrialists prefer to establish units in West Bengal and Jharkhand," Agrawal said.

His statement has come at a time when Prime Minister Narendra Modi has been advocating 'vocal for local' concept in Bihar for industrial growth in the state.

Bihar is already grappling with huge challenges like unemployment, migration, non-creation of jobs and most of them could be cited to a non-conducive atmosphere for industries.

"Low tariff of electricity has big impact on production. The production cost in those states are lower compared to Bihar. As a result, fresh investment is not coming here and existing industrialists are unable to compete with them and bearing hefty losses," Agrawal said.