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Home News Power Sector News Power crunch: AP imposes severe cuts

Power crunch: AP imposes severe cuts

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APShort of nearly 70 million units, or a quarter of the required electricity, distribution companies imposed massive power cuts across the Andhra Pradesh even while supplying industries just half the quota that they need. After imposing three-hour power cuts in Hyderabad, Tirupati, Vizag and Warangal , the four discoms released a schedule with five-hour power cuts in district headquarters and corporations, six hours for towns, municipalities and mandal headquarters and only night-time supply to rural areas.

The discoms have been told to ensure seven hours' supply to agricultural consumers. Rural areas will get power when supply to the agricultural sector is on. On 21-08-2012, the state was able to supply about 208 million units of power against the demand of 280 MU.

Industry will be subjected to three days of power holidays every week along with peak-hour restrictions from 6.30 pm to 10.30 pm. Industries have been given the option of 12 days continuous power holidays in a month. They can avail 10 per cent supply during evening peak hours. Even with the fresh schedule, the industrial sector is facing 48 to 60 per cent shortage of power which is resulting in daily losses of Rs 400 crore.

The Federation of AP Industries (Fapi)  demanded that in order to ensure power supply to the industrial sector, government should introduce power saving measures, beginning with ordering its own offices to stop using air-conditioners. It also demanded imposition of a one-year moratorium owing to only 50 per cent production, a waiver of the Rs 250 per KVA of contracted demand, and exemption from 33 per cent local VAT on diesel purchased for power generation.

A large number of families are on the roads due to industrial losses, said the Fapi, and demanded that government officials stop using air-conditioners to save energy. "Due to the power crisis, the industry is only producing 50 per cent of its total capacity. The situation has become such that the industry is now failing to pay workers' salary and bank loans. Failing to repay three loan installments in a row would make the industries non-performing assets. If the state government will not provide any assistance, then we fear losing more jobs," said Fapi president B.V. Rama Rao.

The state has 4,381 large-scale industries and 185,675 units under micro, small and medium enterprises and over 85 per cent of the industries are based in and around Hyderabad. "The state should announce a power policy like Gujarat and Maharashtra," said vice-president of FAPI Rahul Aggarwal.

Source- Deccan Chronicle


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