Gas crisis gives the jitters to industry

Published: 07th August 2012 10:19 AM  |   Last Updated: 07th August 2012 10:19 AM   |  A+A-

Even as the state government is negotiating with the Union government to recover the gas supplies diverted to Maharashtra, industry in Andhra Pradesh is anxious whether it is in for high power cuts.

Already bogged down by official and unofficial power cuts as the government wrestles with a energy deficit of 40-45 million units, AP industry endured long power holidays all summer. Now, with the diversion of Reliance’s 2 mmcdmd from the KG Basin to Maharashtra, the deficit in AP is likely to go up by an additional 10 million units.

This 2 MMCDMD was allocated to the Ratnagiri power plant cum fertiliser plant in Maharashtra as per a decision taken by the Union government in 2008.

According to Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) secretary-general M V Rajeswara Rao, industrial production in AP is already down by 35-40 per cent due to the power holidays. That, he said, translates to about `350-400 crore per day. Production in some industries, especially small-scale ones, is down by as much as 50 per cent. ‘’If there are more power cuts, production will increase by another 7-8 per cent,’’ he explained.

Industry sources warn of long-term consequences because of the power crisis. As factories go in for cost-saving measures, dailywagers would be the first to be laid off and a domino effect would be triggered. The state government would have to do something fast. A FAPCCI delegation met principal secretary (industries)  Pradeep Chandra a couple of days ago.

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