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Home arrow Power and Energy arrow Power shortages may cause 35-40% industrial loss in NCR: ASSOCHAM
Power shortages may cause 35-40% industrial loss in NCR: ASSOCHAM Print E-mail
Written by Viswanath   
Wednesday, 19 October 2011
New Delhi: The Associated Chambers of Commerce and Industry of India said that power and water shortages may reduce Industrial production in NCR by nearly 35-40% and the competitiveness of SMEs will severely be impacted.

"The current electricity demand of different industrial locations in entire Gurgaon  has gone beyond 400 MW against its availability which is not more than 200 MW.  As a result, industrial units in Ghaziabad, Sahibabad, Mohan Nagar, Loni and towards Meerut belt are suffering daily load shedding, ranging 8-12 hours," said Mr. D S Rawat, Secretary General ASSOCHAM.

The industrial production is reported to have fallen by at least 30-35% in the National Capital Region, including Faridabad, during the past couple of months because of power cuts. The revenue generating town is facing a major problem due to this power shortage and is the main cause for lack of interest of industrialists in setting up units in Faridabad.

Nonavailability of power supply for units sometime up to 8-10 hours a day has upset the production schedules and if the power scenario remains unchanged the resultant loss in industrial production could surpass 35-40% in Faridabad, claim industrial unit owners in the city.

In case of Faridabad, the power demand, particularly for its industrial locations, is around 600 to 700 MW against the availability factor of around 300-400 MW and industrial units are facing daily power cuts of 5-8 hours. This power shortage has impacted the production capacity in places like Mathura Road, reveals the ASSOCHAM Assessment.

However, in Gurgaon, the locations of heavy and engineering industries are more pronounced and their captive power units are unlikely to feed them with required power supplies.  The industrial loss in the region is expected to go up between 40-45% and would suffer heavily.  The other units that might lose their clientele include BPO, KPO and other services sector. In case of Gurgaon, the power demand, particularly for its industrial locations is around 1200 to 1400 MW against the availability factor of around 900-1000 MW.

The power supplies in the NOIDA are of extremely disruptive nature.  This means that the frequencies and hourly power distribution is extremely erratic.  Estimates reveal that approx. 100-200 MW of power shortage is experienced each day in entire Noida region especially in areas like Noida Phase II, Sector 2, 8, 9, 10, 50, 51, 62 and Surajpur belt.

D S Rawat, Secretary General ASSOCHAM said that the worst affected are the medium and small units that rely on grid and use mostly small and inefficient diesel generating sets as backup.  He further said that if corrective measures are not taken, the power situation would further aggravate.
 
The worst power hit sectors in Noida’s industrial units are in SSI, engineering and spare parts units, export houses, BPOs & call centers and media offices.
 
The power shortages have not only hit industrial units in the NCR but it is eroding productivity and efficiency in hospitals, police stations, post offices, banks, educational institutions and corporate offices and may lead to alarming situation if not arrested now.

The ASSOCHAM Internal Assessment of 'Increase in Industrial losses due to Power Shortages' is based on feedback received directly from the industrial units.

 
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