CII Andhra Pradesh has hailed the Centre’s decision to restore supply of 2 million standard cubic metres per day of gas to the State.
“The Government of India’s decision will certainly remove the fears of further power cuts to industry,” Suchitra Ella, Chairperson, CII Andhra Pradesh, said in a statement. With 2 mmscmd of gas, the State can produce around 400 MW of power.
Andhra Pradesh is supposed to get 9.13 mmscmd of gas according to EGoM guidelines. The diversion of 2 mmscmd would have further aggravated the power crisis in the State.
CII has been in continuous dialogue with the Chief Minister, the Industry Minister and other senior officials on the power situation, especially to industries in the State.
CII had suggested various measures in the long and short-term to overcome power shortage.
As a short-term measure, CII made recommendations to the Government to consider reduction of VAT on diesel supplied in bulk to industries for power generation to be reduced to 4 per cent till the scheduled power cuts are lifted.
CII favoured using other fuels for generation from gas plants and to ensure continuous power supply to small and medium industries to operate at least for one shift without any interruption.
The Government was urged to come up with the Renewable Energy Policy to encourage the usage of alternative sources of energy.