CHANDIGARH: Kerala’s gain has come at Himachal Pradesh’s cost, with the Baddi-Barotiwala-Nalagarh (BBNIA) industrial cluster in Solan district, widely recognised as Asia’s largest pharmaceutical manufacturing hub, grappling with prolonged unscheduled power cuts, frequent tripping and rotational cuts over the past fortnight, adversely affecting production.
The Congress-led government in Himachal Pradesh has come to the rescue of its counterpart in Kerala, which has been facing a major electricity crisis since it assumed power in May this year.
The BBNIA Industries Association has now sought the immediate intervention of Chief Minister Sukhvinder Singh Sukhu, expressing concern over daily power cuts of 50–70 MW. These interruptions during production could damage machinery, destroy batches and affect delivery commitments, besides causing losses through penalties, lost orders and erosion of customer confidence.
The extent of the disruption was reflected in the log maintained by a spinning mill in Nalagarh, which recorded 32 power interruptions, resulting in 10.47 hours of power loss during September. An official of Himachal Pradesh State Electricity Board Limited (HPSEBL) said the Baddi industrial cluster requires around 245 MVA, while the State Load Dispatch Centre flags a shortage of around 50 to 90 MVA.
The situation has become more pronounced after the state government discontinued the practice of selling its 12 per cent free power royalty to the Himachal Pradesh State Electricity Board Limited and opted to trade it through competitive bidding. The move reportedly fetches higher returns than the earlier rate of Rs 2.92 per unit offered by the board, with power being sold to Kerala at Rs 14.50 per unit.
The Himachal Pradesh government is providing Kerala with 600 MW of electricity from October 1 to 31.
The Baddi-Barotiwala-Nalagarh Industrial Association, a body representing approximately 250 industrial establishments employing more than one lakh workers directly and indirectly, has sent a letter to Chief Minister Sukhvinder Singh Sukhu. Across Himachal Pradesh, there are more than 2,500 industries employing over five lakh people.
The letter reads: “While we understand the financial logic, we are compelled to bring to your notice that this decision coincides with a period when our member units are struggling with erratic supply, unscheduled cuts and repeated tripping on industrial feeders. In many estates, weekly rotational cuts are now supplemented by several hours of unannounced outages every day".
"For industry, power is not a commodity, it is continuity. Manufacturing cannot be switched on and off like a domestic appliance. A single interruption in mid-process can destroy an entire production batch, damage expensive machinery, and break delivery commitments to national and international buyers. The losses are not limited to one shift. They accumulate as lost orders, penalty clauses, and a permanent loss of confidence among customers. Our members report a recurring pattern of disruption that is pushing up costs and eroding the competitiveness that Himachal had painstakingly built over decades.”
“We are not opposed to the sale of genuinely surplus power. It is a legitimate commercial activity of the state. What we are opposed to is the sale of power that is not surplus in effect because local demand is being met inadequately. If Himachal's own factories are forced to run on generators, lose production and shed workers, while electricity generated from our rivers lights homes and factories in another state, the priorities need urgent correction,” the letter added.
The BBNIA demanded that adequate electricity be secured for local industrial consumers, particularly during peak-demand hours, before power is committed for export to other states. It urged the government to address infrastructure bottlenecks and ensure reliable supply to protect industrial activity.
The association has also sought a review of the power export arrangement, an immediate audit of tripping and outages on all industrial feeders, and a corrective action plan within 30 days to minimise disruptions and production losses.
YS Guleria, president of BBNIA, said, “The commercial intent of the state government to generate revenue through surplus energy trading is not questioned, but it should not come at the cost of industries already suffering from severe power deficits.”
