Power crisis hits mfg units; may lead to 45% fall in I.P in June-July: Survey
Updated: May 22, 2013 01:09:23pm
New Delhi, May 22 (KNN) The unscheduled power cuts in Delhi and NCR have forced industrial units to curtail their production by 25 per cent, a survey has found.
Acute power shortage in Delhi-NCR is expected to severely impact the small and medium enterprises (SME) sector. As a result of the power deficit, industrial production in states of Delhi, Noida, Gurgaon, Ghaziabad and Faridabad would have to be curtailed to the extent of 40 to 45 per cent, particularly in manufacturing units that do not have power back-up, the survey conducted by Assocham said.
The association had sought feedback based on the latest power situation in leading states that have substantial concentration of industrial presence. It revealed that in states like Haryana, Delhi, Punjab, energy deficit which was around 20-25 per cent in April-May will go beyond 40-45 per cent in June-July 2013.
The secretary general of Assocham, D S Rawat said, “The power crisis will be a disaster for SME sector. The manufacturing sector is the largest provider of blue collar jobs.”
About six million people are employed in about 3,50,000 SMEs in the Delhi-NCR. With companies unable to put their machinery to optimum use, there could be a massive loss of employment, Rawat said.
Unscheduled power cuts have forced industries to use diesel generators, which are turning out to be a very costly proposition, a majority of the respondents said.
According to the survey, over 10,000 SME units from NCR left the state last year when they could no more stay afloat with increasing power cuts and load shedding.
“The special misery for MSMEs lies in the loss of production due to extensive load shedding, which is not just in the man-hours and in terms of wages that are paid, but also the interest paid on raw materials, transport booked for the whole month, and losing the customers due to delay in supply schedules, etc,” a respondent told Assocham.
Extended power cuts in Gurgaon’s industrial units have pushed down growth in the small-scale sector by over 40 per cent in the past one month. Further, daily outages of 10 to 12 hours have been reported from Udyog Vihar in the past few months, leaving the industrialists with no choice except to shift production full-time on diesel-based backup, further escalating the operational costs, the survey found.
Assocham also projected further losses of 15 to 20 per cent for the small-scale industries, if the power crisis in the region continues. “If the power scenario remains unchanged, the resultant loss of industrial production could surpass 60 per cent for Gurgaon’s industrial units,” Rawat said.
Small scale manufacturers said it was difficult for them to operate efficiently due to the energy crisis as power generation cost increased owing to a shift to diesel. The high production costs have forced small and medium industries of Faridabad to drastically reduce their production capacity, the survey said.
Due to power deficit, the industrial units in Noida and Ghaziabad in the past 30 days suffered a loss of 25 to 30 per cent, said the ASSOCHAM assessment. (KNN)
Acute power shortage in Delhi-NCR is expected to severely impact the small and medium enterprises (SME) sector. As a result of the power deficit, industrial production in states of Delhi, Noida, Gurgaon, Ghaziabad and Faridabad would have to be curtailed to the extent of 40 to 45 per cent, particularly in manufacturing units that do not have power back-up, the survey conducted by Assocham said.
The association had sought feedback based on the latest power situation in leading states that have substantial concentration of industrial presence. It revealed that in states like Haryana, Delhi, Punjab, energy deficit which was around 20-25 per cent in April-May will go beyond 40-45 per cent in June-July 2013.
The secretary general of Assocham, D S Rawat said, “The power crisis will be a disaster for SME sector. The manufacturing sector is the largest provider of blue collar jobs.”
About six million people are employed in about 3,50,000 SMEs in the Delhi-NCR. With companies unable to put their machinery to optimum use, there could be a massive loss of employment, Rawat said.
Unscheduled power cuts have forced industries to use diesel generators, which are turning out to be a very costly proposition, a majority of the respondents said.
According to the survey, over 10,000 SME units from NCR left the state last year when they could no more stay afloat with increasing power cuts and load shedding.
“The special misery for MSMEs lies in the loss of production due to extensive load shedding, which is not just in the man-hours and in terms of wages that are paid, but also the interest paid on raw materials, transport booked for the whole month, and losing the customers due to delay in supply schedules, etc,” a respondent told Assocham.
Extended power cuts in Gurgaon’s industrial units have pushed down growth in the small-scale sector by over 40 per cent in the past one month. Further, daily outages of 10 to 12 hours have been reported from Udyog Vihar in the past few months, leaving the industrialists with no choice except to shift production full-time on diesel-based backup, further escalating the operational costs, the survey found.
Assocham also projected further losses of 15 to 20 per cent for the small-scale industries, if the power crisis in the region continues. “If the power scenario remains unchanged, the resultant loss of industrial production could surpass 60 per cent for Gurgaon’s industrial units,” Rawat said.
Small scale manufacturers said it was difficult for them to operate efficiently due to the energy crisis as power generation cost increased owing to a shift to diesel. The high production costs have forced small and medium industries of Faridabad to drastically reduce their production capacity, the survey said.
Due to power deficit, the industrial units in Noida and Ghaziabad in the past 30 days suffered a loss of 25 to 30 per cent, said the ASSOCHAM assessment. (KNN)
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