MSMEs crushed under power crunch in AP
K Prudhvi Raju
prudhvi.k@postnoon.com
HYDERABAD: The demand for power is just 15 per cent more than the supply by AP Transco. However, the power shortage MSMEs are facing is more than 30 per cent on an average in the last four months.
There is 52 per cent power cut from September till the third week of November, 41 per cent power cut from the last week of November to the third week of December and around 29 per cent in the last week of December.
Power is going to mega projects at the cost of MSMEs. “They have dedicated feeders and express feeders that supply power without an interruption. They should use only 70 per cent of the supply, but they draw 100 per cent of their requirement,” said V Hanumantha Rao, president, Federation of Andhra Pradesh Small Industries Associations (FAPSIA). MSMEs cannot afford generator. Even though they manage to buy it with some loan, its maintenance is a heavy burden with Rs 14 per unit.The maintenance is ever increasing with an increase in diesel and petrol prices. Mega projects can produce goods at any price and have an edge in fixing the price according to the costs. They can even afford generators.
MSMEs don’t have the luxury of hiking the product costs like major industries, he says.
The alternate, renewable energy sources need heavy investment. It costs Rs. 13 crore to produce 1 MW through solar energy. The government is always in favour of mega projects and has a ‘step-motherly’ attitude towards MSEMs says J Nageswara Rao, Secretary, FAPSIA. The government does not have a vision for future energy needs. Domestic and agricultural sectors get more supplies at the cost of the industry and MSMEs suffer because of that.
There were few power cuts during YSR’s six-year regime. He also reduced 15 paise per unit. The current regime could not supply required power by either bringing in central funds or through state funds. Telengana agitation added more burden to the power shortage. This all crippling MSMEs, he added.
Supplying power depends on the ability of the political leader at the helm of affairs. Kiran Kumar Reddy promised that he would supply sufficient power to the Industry. “We are waiting that to happen,” J Nageswara Rao said.
Category: Business, Business News, Headlines
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