The Hindu Business Line : Small, medium units in AP reel under power crisis

Visakhapatnam, July 3 The micro, small and medium enterprises (MSMEs) in Andhra Pradesh are facing severe power and labour problems in recent months and many of them are on the verge of closure, according to Mr B.V. Rama Rao, President of the Federation of Andhra Pradesh Industries (FAPI) and Managing Director of Swarnandhra Jute Mills in Srikakulam district.

In a statement here on Friday, he said power supply to industries was erratic and unreliable, pushing them into financial crisis. “Unscheduled power-cuts are playing havoc with the industry and, even though there are dedicated power lines, there is no guarantee of power supply. Production schedules are disrupted and many of the units, especially in the jute industry, are on the brink,” he said.

Labour crisis

To make matters worse, the jute industry is facing severe labour crisis and “even the big jute mills such as Chittilvalasa, Nellirmarla and Amadalavalasa mill have declared lockouts. Many more jute units in Srikakulam and Vizianagaram districts are on the verge of stopping production due to the unreliable power supply situation and other problems.”

The jute units and other small units were unable to pay back their term loans from the banks and the interest was proving to be too crippling for them, Mr Rama Rao said and urged the State and the Union Government to declare a special package for the units. “Otherwise, survival is impossible not only for the units but also for the industrialists. Industrialists will be forced to end their lives like farmers,” he remarked.

Promises undone

He said many of the industrialists had set up units in accordance with the State’s industrial policy (2005-10) offering several incentives and subsidies and also the promise of continuous power supply.

“None of those promises has been honoured and it has become virtually impossible to run the units. The State Government should shoulder the blame and it is for the Government to take corrective steps,” he pleaded.

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