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Power shortage may force 25% MSMEs to shutdown in north India

Updated: Jun 09, 2014 12:14:33pm
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New Delhi, Jun 9 (KNN) Over 25 per cent of micro, small and medium enterprises (MSMEs) in northern India are on the verge of closure owing to unprecedented power crisis in the region, said a release by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

"The worst affected states are Punjab, UP, Haryana, Rajasthan and Delhi, thereby threatening the livelihoods of thousands of workers," said ASSOCHAM Secretary General DS Rawat.

In its survey released recently, the chamber had stated that the industrial production is likely to fall by 40 per cent due to frequent power outages in the regions that are also coping with severe heat wave.

In states such as Uttar Pradesh, Madhya Pradesh, Maharashtra and Jammu and Kashmir, energy deficit which was around 20-25 per cent in April-May would go beyond 30-35 per cent in June-July, it said.

Uttar Pradesh, which is one of the industrialized states in the country is facing one of the worst crises with energy deficit touching about 11.2 per cent, facing energy deficit of over 924 Million Units (MU). The state is resorting to an average load shedding of 10-12 hours a day.

Jammu and Kashmir suffered a power shortage of 20.3 per cent in April which will go around 25 per cent and the gap between power availability and supplies would be around 1000 MU.

Power theft, leakages in transmission and commercial losses were the main reason for power deficit in these states, it said.

The industry body said with the use of non-conventional resources of energy, these regions can become power surplus regions in a few years.

Since a few new capacities are emerging in power sector and transmission and distribution losses remain untamed to the extent of 50-55 per cent in most of leading states, the power situation is unlikely to be better in next few months even though mercury levels will fall significantly, added Rawat.

He also said that lack of fresh investment and modernization coupled with huge transmission losses are responsible for the grave power situation in the country which will continue. (KNN/ST)

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