Power shortage in Andhra Pradesh has taken a toll on small and medium enterprises with thousands of them getting closed, resulting in losses.
According to A.P.K.Reddy, President of Federation of Small and Medium Enterprises of Andhra Pradesh, about 12,000 small units in the State have closed resulting in a loss of Rs 762 crore.
He said the incentives from the State were pending for several years and this has piled up to about Rs 700 crore.
In a statement, he said the State Government needs to ensure adequate power supply to small enterprises at lower tariffs as they have immense potential to provide jobs.
The Government and the Andhra Pradesh Electricity Regulatory Commission need to look at the power tariff in other neighbouring states before finalising for the next financial year.
On behalf of the Federation, he said that the Government should immediately concede to the requests of the industry for supply of additional power.
The Government needs to allocate about Rs 12,000 crore towards power subsidy and purchase of power. The amount allocated now at about Rs 6,000 crore for the next year is inadequate, he said.
Referring to power being supplied at about Rs 3 in some of the northern States, he said that the industry should be supplied at lower rates compared to what is being projected.
He faulted the Government for mismanaging the sector by encouraging the private sector and offering them higher prices.