Rs. 31,750 Cr Lost To Power Cuts

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) has claimed that the industry has suffered a production loss of Rs. 31,750 crore on account of the 40% power cut it had in the last 14 weeks.

A delegation, led by FAPCCI president V S Raju, called upon Chief Minister N Kiran Kumar Reddy at the state Secretariat on Wednesday, and told him that many industrial units have become sick, and that several are on the verge of sickness.

Raju emphasized that it is not just the loss of production and consequent financial loss alone that is causing concern to FAPCCI, but the loss of jobs - thousands and several thousands of them - he said.

"Many micro and small industrial units are in a hapless condition, and many medium and large industries are running into serious financial difficulties. Cumulatively, the image of Andhra Pradesh, as the preferred destination for investments, is getting affected," the FACCI chief said.

Raju brought to the notice of the Chief Minister that in the months of January to May, the power shortage scenario would deteriorate further, with shortages rising to such high levels as 20% to 40%.

With these expected shortages of power, the industry will suffer a perilous loss of Rs. 70,000 crore or more in the 5 months ahead, adding further economic and human distress, on account of increasing job losses, to AP.

Making a Power Point presentation, FAPCCI vice-president Devender Surana brought to the notice of the Chief Minister that for all these 14 weeks, the average energy shortage was only 10% to 12% but that the industry had suffered a high power cut of 40%. He requested the CM to see that productive sectors are hit by more power cuts than average.

The FAPCCI delegation also complained of delays in disbursing power subsidies, investment subsidies, and tax incentives to industry. It also took up the issue of the 5% VAT charged to the solar power sector, when in Tamilnadu, Maharashtra, Jammu and Kashmir and Orissa there is no VAT on solar power.

The CM assured the FAPCII delegation that power shortages would be overcome soon. He said that 2 power plants would be restored, and that the industry will then be saved from power cuts to a large extent. He also said that from 25 December, power cuts will be reduced to one day only. (INN)