AHMEDABAD: Gujarat’s industrial engine is facing a major power shock just weeks before Diwali, with an eight-hour electricity shutdown directive threatening production, delivery schedules and business commitments across South Gujarat.
For the first time in 15 years, the region is grappling with a severe power crisis, forcing industries to rearrange operations at the height of the festive season.
The Southern Gujarat Chamber of Commerce and Industry (SGCCI) has warned that the disruption could trigger losses worth thousands of crores of rupees and jeopardise the livelihoods of nearly 25 lakh workers across the industrial belt they also wrote a letter to Gujarat CM.
With electricity supply scheduled to be suspended from 4 PM to midnight on designated staggering holidays, more than 250 small and large industrial units in Navsari GIDC are confronting uncertainty. The timing could hardly be worse: textile, diamond, manufacturing and other industries in the Surat–South Gujarat belt are racing against deadlines to complete Diwali orders worth crores of rupees.
Behind the crisis lies a combination of soaring international coal and gas prices, geopolitical tensions, coal shortages, lower-than-expected wind power generation and dwindling water levels in dams. As electricity generation struggles to keep pace with demand, industries have been asked to shoulder the burden through scheduled power cuts.
The power crisis has struck at a time when factories traditionally operate at full capacity, often running around the clock to meet the surge in festive demand. However, this year, industrialists are being forced to rethink their production schedules as electricity restrictions threaten to bring manufacturing lines to a standstill during crucial evening and night hours.
The disruption comes on top of an already difficult operating environment. Industrial units have been struggling with raw-material shortages, a scarcity of skilled labour, and challenges involving air-pollution restrictions and gas supplies. Now, electricity shortages have added another obstacle, placing businesses under mounting pressure to fulfil orders on time.
For industries dependent on continuous production processes, an eight-hour shutdown is far more than a temporary inconvenience. Interruptions can affect machinery operations, production cycles, packaging, dispatches and transportation. Consequently, delayed deliveries could trigger payment delays, disrupt supply chains and deepen liquidity pressures, particularly for micro, small and medium enterprises (MSMEs).
The restrictions will also apply on designated staggering holidays, compelling factories that normally operate 24 hours a day to reorganise shifts, bring forward production and adjust workforce schedules.
Ashok Jirawala, president of the Southern Gujarat Chamber of Commerce and Industry (SGCCI), has raised serious concerns over the economic consequences of the decision, warning that the industrial sector could suffer losses running into thousands of crores of rupees.
Talking to The New Indian Express , Jirawala described the move as a major blow to MSMEs, arguing that the scale of the scheduled shutdown was unprecedented in the past 26 years. He also highlighted the potential consequences for nearly 25 lakh workers whose livelihoods depend on the industrial ecosystem across South Gujarat.
According to Jirawala, the timing of the cuts threatens to disrupt the entire chain of festive-season business, from manufacturing and finishing to parcel packing, transportation and the dispatch of finished goods.
Textile and diamond businesses in Surat, along with other industrial units, are racing to complete Diwali-related orders. Any interruption in production could delay shipments, jeopardise delivery commitments and postpone payments. For businesses already operating under tight deadlines, such delays could create a cash-flow crisis just when working capital is needed most.
Jirawala has therefore questioned why industries should be forced to absorb the consequences of inadequate power generation when electricity-producing companies have earned substantial profits over the years.
He has proposed that the shutdown schedule be shifted from 4 PM–midnight to 7 PM–7 AM. According to the proposal, such a change would allow factories to continue production during daytime hours, when solar power generation is more readily available, while preserving opportunities for transportation, loading and the movement of finished goods.
The demand reflects the industry's attempt to minimise economic damage without ignoring the wider electricity shortage.
Bipin Jameria, secretary of the Navsari GIDC Industries Association, said industrialists had already been informed about the scheduled power cuts and advised to make alternative arrangements.
Explaining the association's response, Jameria said, "We have informed all industrialists in advance that power supply will remain suspended from 4 PM to midnight on designated staggering holidays. We have advised business owners to complete as much production as possible by starting early in the morning or operating during the night shift."
He added that the association had also approached electricity company officials with a request to ensure a stable supply during the remaining hours.
"We have requested the authorities to maintain a consistent electricity supply outside the shutdown period so that industries can reorganise their operations and avoid unnecessary production interruptions," Jameria said.
The association's approach is aimed at reducing disruption while the broader crisis continues. Nevertheless, industrialists remain concerned that shifting production hours may not be practical for every unit, particularly factories dependent on continuous processes, specialised machinery or coordinated supply chains.
With Diwali approaching, the challenge is not simply to keep machines running but also to ensure that orders are completed, workers remain employed and customers receive goods on schedule.
Talking to Gujarat’s Local Channel, S. C. Trivedi, executive engineer in charge at the Gujarat Energy Transmission Corporation (GETCO), explained that the electricity shortage is linked to fluctuations in power generation, rising demand and difficulties in securing adequate supplies from different energy sources.
According to Trivedi, maintaining electricity availability is comparatively easier during the daytime because solar power contributes substantially to generation. However, the situation changes sharply in the evening, when solar output falls just as electricity demand rises.
During those hours, the power system depends more heavily on wind energy, coal-fired plants, nuclear generation and electricity procured through the Western Grid.
Trivedi explained that wind generation has recently fallen short of forecasts, reducing the expected contribution from that source. At the same time, geographical and geopolitical factors have affected coal and gas availability, while rising fuel prices have increased generation costs for private power producers.
The combination has created a difficult balancing act for the authorities: meeting rising demand while ensuring that sufficient power remains available for agriculture, households and industry.
Amid the shortage, the government must also protect agricultural operations, which depend on electricity for irrigation. Trivedi clarified that farmers continue to receive eight hours of daytime electricity under the existing arrangement, with no change to that schedule currently announced.
This places additional pressure on the power system as officials attempt to maintain agricultural supply while limiting disruptions to industrial and other consumers.
The authorities are therefore confronting competing demands: ensuring electricity for farmers, keeping essential services running, meeting household needs during the festive season and preventing industrial production from suffering a prolonged setback.
The challenge is particularly acute in South Gujarat, where manufacturing, textiles, diamonds and other industrial activities support extensive employment networks and business supply chains.
In a parallel effort to improve electricity availability, the government has issued a strict directive to 31 non-operational power plants, asking them to resume operations within the next 10 days.
The move is intended to strengthen generation capacity and ease pressure on the electricity network. However, the extent to which the restart of these plants will provide immediate relief to industries remains uncertain.
Meanwhile, SGCCI has stepped up its representations to both the state and central governments, seeking urgent intervention to address the shortfall. One of its key demands is the activation of coal-based power generation units within Gujarat to improve electricity availability and reduce the burden on industrial consumers.
Industrial representatives also held an online meeting with senior officials in Gandhinagar on October 15, presenting their concerns over the economic impact of the shutdown schedule and urging the authorities to find a workable solution.
At the same time, industrialists have indicated their willingness to cooperate with the government and conserve electricity, acknowledging that the current crisis is linked to wider energy-sector challenges.
However, they want the burden to be distributed in a manner that protects production, employment and business commitments rather than forcing factories to absorb disproportionate losses during the festive rush.
Despite the ongoing efforts, officials have not specified when the power restrictions will end.
Trivedi said GETCO, Paschim Gujarat Vij Company Limited (PGVCL) and power companies associated with the Western Grid are continuously working to improve generation availability and restore normal supply conditions.
For industrialists, however, the absence of a clear timeline is itself a major concern. Without certainty over electricity availability, factories cannot confidently plan shifts, calculate production capacity or guarantee delivery dates to customers.
The immediate priority is to secure adequate power generation while minimising the economic damage caused by the scheduled cuts. Industrialists are hoping that the state and central governments will act swiftly to ease the shortage before festive orders are affected on a larger scale.
For Gujarat's industrial belt, the stakes extend far beyond an eight-hour power shutdown. Delayed orders, disrupted supply chains, mounting financial pressure and uncertainty over workers' livelihoods could turn an energy shortage into a wider economic setback. With Diwali approaching, industries are now waiting for a practical solution that can keep production moving without compromising the electricity needs of farmers and households.
