Wednesday, August 22, 2012

Power cuts shock small units


By SNV Sudhir
Visakhapatnam, Aug 23: Reeling under severe power crisis and incurring heavy losses due to the exorbitant penalties levied on them for delay in their deliveries followed by a continuous power holiday since June, micro, small and medium enterprises (MSMEs) have lost hopes of revival.
Tuesday’s announcement of extension of power holiday to one more day to the existing two, have added fuel to the fire of their woes.
“There was a crisis since September last year owing to the Sakalajanula Samme, but we had hoped that it would settle. Now, there is the announcement of a fresh three-day power holiday. We are not allowed to function normally,” said Visakha Autonagar Small Scale Industrialists Welfare Association president Ramakrishna Pratap Narappareddy.
There are around 600 micro, small and medium scale industry units being run in the district and all put together, they make a business turnover of Rs.200 crore per annum.
This year they have estimated a production loss of 40 per cent due to the continuous power crisis since last September when Singareni workers too joined the Sakalajanula Samme.
Around 20,000 workers, directly and indirectly, depend on these 600 units in the district. It is reliably learnt that layoffs have already started in most units with managements unable to pay wages.
Industrialists are seeking subsides from government to buy diesel generators as an alternate power supply method. A 63 kv diesel generator costs around Rs.8 lakh, and industrialists are seeking 60 per cent subsidy from government to buy the genset and also on fuel.
They are also suggesting setting up solar energy generation units as an alternative method to tide over the crisis to a certain extent.

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