Industrialists press panic button, industries on the verge of collapse in Vizag

By SNV Sudhir

Visakhapatnam, July 1, 2014:  Along with farmers, small and medium scale industrialists are anxiously waiting for rains. These industries have already pressed panic button due to acute power shortage for a few months. Now, they are of the opinion that there will be more power cuts for industries in the coming days as the government invariably gives preference to agriculture sector with Kharif in progress.

In Vizag there are around 150 High Tension (HT) category power intensive industries and around 600 Low Tension (LT), micro, small and medium industries. These industries have already started facing production losses or delay in supplying to the vendors leading to huge penalties which will have impact on the revenues, as the discom has started Peak Hour Load Restrictions (PHLR) from 6 pm to 12pm and allowing only lightening load during that time. Worst is the condition of ferro alloy factories which are around 30 in number in the district as the power restriction is from 6pm to 6am.

They have already cut the production by at least 40 percent due to power load restrictions and penalties. These micro, small and medium industries put together make a business turnover of Rs 200 cr per annum. Certain relief measures announced few months back failed to bring cheer to them. Around 20,000 workers directly and indirectly depend on these 600 units in the district.

The hardships of these industries have actually begun since September 2011 owing to Sakalajanula Samme, when the power generation has severely hit, but they were hopeful everything would be fine. But nothing has changed and it is close to four years. Since then these industries either had power holidays or load restrictions. Initially it was four days of power holiday, after that it was one day other than Sunday and now there are no power holidays, these load restrictions are said to be taking life out of these industries.

“We are more worried as there are no signs of rains even we entered July. If this situation continues, we will be hi hard where we will fail to revive this time. These industries are already reeling under severe crisis since more than 3 years. Heavy penalties by vendors, production losses have become a norm these days which is not at all good for the sector if this situation continues further. Government should announce some immediate relief measures more so a bail out package for micro, small and medium scale industries,”  Visakha Autonagar Small Scale Industrialists Welfare Association (VASSIWA), president, Ramakrishna Narappareddy, told this correspondent.