Industries in AP face 50% power cut, Rs 257-cr loss/day

Our Bureau Hyderabad | Updated on July 12, 2012 Published on July 12, 2012

(From left) Mr V. Anil Reddy , industrialist; Mr Devender Surana , President, FAPCCI; and Mr Shiv Kumar Rungta, industialist, at a meeting in Hyderabad on Thursday over the power crisis faced by them. - Photo: P.V. Sivakumar   -  Business Line

Industries in Andhra Pradesh are facing darker alleys as the power cut is now at 50 per cent with 15-day power holiday.

According to the State Government’s announcement of power cuts on Wednesday, industries now will have a three-day power holiday a week, and peak hour cuts every day. This means, they will effectively be closed for 15 days in a month.

“The situation is alarming as the power cuts will lead to a production loss of about Rs 257-crore/day, besides driving some of the companies sick, thereby, leading to job losses,” Mr Devendra Surana, President of Federation of Andhra Pradesh Chamber of Commerce and Industries, said.

Addressing a press conference along with Fapsia and representatives and associations of various sectors including pharma, spinning mills, flour mills and power-intensive industries such as steel mills, Mr Surana said the peak shortage is estimated to be about 18 per cent but the industry is slapped with 50 per cent power cut.

Industries face closure with their profitability being wiped out while missing contracts. This may eventually lead to job loss and payment defaults.

Mr M.M. Reddy, representing 28 industrial estates in and around Hyderabad, said small-scale industries are worst hit as they do not have any option but to shut down.

They require about 350 MW of the 4,000 MW consumed by Hyderabad but are faced with 15-day power holiday.

Mr. Narayana Reddy of the bulk drug industry, said the sector employs about 5,00,000 people and contributes to Rs. 40,000 crore turnover annually. This comes under essential services and yet faced with power cuts.

The industry suggested the Government to work out a short term and long term plan for adding fresh capacities and reschedule power supply. They called upon the Government to encourage wind mills and solar photovoltaic plants, setting up of captive units and open access to purchase power.

An official, Konaseema Power, said the Government could encourage use of diesel and naphtha in some gas plants to boost generation.

A flour mills representative said due to production difficulty and high cost of power, traders from other States may take advantage and pump in stocks here while consumers and mills would face losses.


Published on July 12, 2012
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