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Home News Power Sector News AP industries body flays power holiday, tariff hike plan

AP industries body flays power holiday, tariff hike plan

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APThe Federation of Andhra Pradesh Industries (FAPI) has criticised the move of various power distribution companies in the State to declare power holiday for 12 days in a month from March 1 and said it would cripple the industry, already facing many problems.In a press release, Mr B.V Rama Rao, President of FAPI, said the State Government's lack of forethought and planning was very much evident in the way the power holiday was declared. Many gas-based power projects had come up in the State, with a capacity of 5,340 MWs, but natural gas linkage was available only to the extent of 1,670 MWs and the State Government was making no attempt to secure gas linkage for the rest of the capacity. He complained that even though plenty of gas was available in the Krishna-Godavari basin, it was being diverted to Gujarat by Reliance Industries and the State Government was in no position to stop it.

Further, said Mr Rama Rao, Reliance was also not producing enough gas in its D-6 block in the Krishna-Godavari basin in accordance with the projections, and the Union Government was not acting against the company. "While the industry in the State is suffering badly, neither the State Government nor the Union Government is in a position to do anything," he said and appealed to the Chief Minister to take up the matter urgently with the Centre and find a solution.

He said roughly 50 lakh workers were dependent in the State on various industries and the power holiday would force many of these units to shut down. They would not be in a position to pay salaries to workers or clear bank loans.

Mr Rama Rao said the FAPI would hold a meeting in Hyderabad on March 18 to discuss the issues relating to power holiday and proposed power tariff hike.

He also said FAPI was not against subsidised, or even free, power supply to the agricultural sector, but in the name of cross-subsidisation the industry should not be asked to shoulder the burden. There should be budgetary support for such schemes, he added.

Source- Hindu


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