Power cuts production

Industrial growth in the state has plunged by at least 20 per cent as power shortages and breakdowns have forced industrial units to curtail production. The estimated loss was put at Rs 500 crore per day in the last seven days. Conventional estimates put the loss at over Rs 30,000 crore for the summer season.

Cement, steel, textile and aqua industries have reported a steep fall in production figures for the month of March when the enforced three-day a week closure was imposed. With the drop in production cement prices recorded Rs 40 increase per bag in just a fortnight and crossed Rs 200 mark. Slowdown in production caused prices in the steel industry to rise by 5 per cent in just one week. Export of aqua products to other states has been hit because about 1,100 ice supplying units had to close down for lack of power.

“I have never seen power cuts of this proportion in the last 20 years. A one-day closure of industry means a loss of Rs 500 crore and we are not in a position to bear it any more,” said Mr K. Harishchandra Prasad, president of the Federation of Andhra Pradesh Chamber of Commerce and Industry (Fapcci).

A delegation of industrialists met the Chief Minister, Mr K. Rosaiah, on Sunday and informed him that small and medium units are closing down with the three-day power cut. Mr Rosaiah responded positively and gave an assurance that there would be some relief in the coming days, Mr Prasad said.

The Confederation of Indian Industry (CII) will meet on March 17 to chalk out a contingency plan. “Already job cuts have started in several units. Industry is not in a position to absorb the three-day cut,” said Mr Y. Harish Chandra Prasad, outgoing president, CII AP chapter.

Jute and textile units are running at less than 50 per cent capacity and ferro alloy industries have been instructed to trim their production by 50 per cent.

“These units need continuous power. But we are not in a position to give power even at 50 per cent plant load factor. This precarious situation will continue till the rabi season ends,” said a senior official in APTransco.

The government has given strict instructions that seven hours of power a day must be supplied to farmers even if it means disconnecting power to other sectors.

“Earlier, we were allowed to take decisions basing on local conditions. Now, everything is coming from Hyderabad and we have no choice but to comply,” said a superintending engineer in the Northern Discom.

Guntur district has more than 10,000 industrial units and most have shrunk production by half. Ginning mills, cold storages and the biggest chilli market in Asia are located in Guntur district. “Though the cold storages belong to farmers, power officials list them in the industrial category, forcing closure of units three days a week,” said Mr Y. Balaram, a chilli farmer.

Ceramic, paper, and glass industries are also struggling with the three-day power cut imposed from March 1. They fear more power cuts as the summer demand rises. Can cut if required

Representatives of industry estimate that it could take two to three years to recover from the setback caused by the power shortages even if power supply is normalised once the monsoon season starts.