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Andhra protest costs MSMEs more than Rs 450 cr

Updated: Oct 09, 2013 04:58:33pm
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Visakhapatnam, Oct 9 (KNN)  The widespread protest against Centre's decision to spilt Andhra Pradesh today entered the 5th day causing more than Rs 450 crore losses to the micro, small and medium enterprises (MSMEs) in Telangana and Seemandhra regions.

Production loss of over 4,670 MW of power has left 21 million people without electricity since the last five days.

Not only has the protest widely hit the MSME sector, the power outage also threatened to affect technology giants like Google, Microsoft and Facebook.

Striking workers from electricity departments have shut down power plants and hindered distribution, extending blackouts for the 5th consecutive day in six districts of Andhra Pradesh.

The Vijayawada Thermal station in Coastal Andhra, from where the state gets more than 1,750 MW of power, is completely shut down.

Five units of the Rayalaseema Thermal station are also down due to the strike while there is no generation at Donkarai hydel station, Sileru power house and Srisailam right bank.

The Kothagudem Thermal station in Khammam and Ramagundam thermal station in Karimnagar, both in the Telangana region, are working at present.

The Kakatiya thermal station near Warangal was shut down on Tuesday due to boiler tube leakage.

Talks between Andhra Pradesh Chief Minister Kiran Kumar Reddy and striking power sector employees, agitating against the creation of a Telangana state, yesterday remained inconclusive. The indefinite protests by around 30,000 government employees from the Seemandhra region has led to massive power outages, crippling normal life across the state.

Even the hospitals, schools and colleges in Seemandhra have been badly hit.  Airports in Seemandhra are operating on backup systems while the train services have been the worst hit, forcing the East Coast Railway to either cancel or reschedule important trains.

Cellular phone services are down across much of the state; internet and ATM services have also been affected.

About 4,000 MW of power generation has been impacted due to the on-going agitation.  Chief Ministers of Tamil Nadu, Karnataka and Kerala have written to the central electricity authority warning of a possible failure of the Southern Power Grid, which could lead to a total blackout across all southern states.

“Since the last 4-5 days, there is complete power cut for full day. The industry is facing huge loss. MSMEs are losing 50 per cent production since last five days.  Approximately, in Andhra the total loss to the MSME sector is about Rs 335 cr, and it is Rs 135 crore in Telangana.  In the government sector also, the loss is nearly Rs 150 crore,” said Vice President of Federation of Andhra Pradesh Small medium and micro enterprises (FASMMI), K Subba Rao from Kurnool in Prakasam District of Seemandhra.

The loss is immense.  MSME units are suffering a lot due to bandhs and power cuts. Since the last 4-5 days it has been a real tough time for us, said President of the Fertilizers Dealers Association of Andhra Pradesh, Munender G Shetty from Secunderabad.

In fact, the entire past month was quite tough for us.  MSMEs have incurred more than Rs 200 crore of loss, especially in the AP-Rayaseema part.  In Telangana, the situation is better as they don’t have power cuts.  For industries there is total power cut since the last 4-5 days, Shetty added.

“For the next few days, the electricity department will give 50 per cent power in the night. There is a big loss to the employment in Andhra and MSME sector may be affected in large,” Rao said.

“Telangana gives more than 50 per cent employment to the MSME sector. Even the Sales tax, revenue all will be affected. Tax rules and permit rules will also differ now. Getting raw materials will also be tough now, and we would be required to get permits to bring the raw materials and market the products,” he added.

“Due to the divide, the industrial loss will be huge,” Rao feared.

Telangana’s capital Hyderabad is also witnessing frequent power cuts, but the situation is not that bad.

“In our area the power situation is ok, so there are not many losses. The labourers are also turning up. The overall situation is ok in Hyderabad,” said President of the Fibreglass Industries Association of Andhra Pradesh (FIAAP), K Narayana Reddy from Cherlapally, in Hyderabad.

The strike by thousands of workers blacked out several districts of Coastal Andhra and Rayalaseema.

The disruption of power supply is causing severe difficulties for the public and for the MSME sector.

The protests have even crippled the transport of goods between Kolkata-Chennai, Chennai-Hyderabad, Hyderabad-Kolkata, and Vijayawada-Jagadalpur highways and transport of goods to other states like Odisha and West Bengal.

India created three new states—Jharkhand, Uttarakhand and Chhattisgarh—in 2000. The country has 28 states and seven union territories that are administered by the central government.  (KNN/SD)

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