Reeling under the impact of power shortage, industries in Andhra Pradesh propose to meet on March 24 to chalk out an action plan. “We are also contemplating not to pay taxes and bills to the State Government if nothing concrete is forthcoming from them”, said Mr Rama Rao, President of FAPI (Federation of Andhra Pradesh Industries).
The power cuts are affecting nearly 15 working days. This is leading to production loss, which in turn is putting pressure on payment of salaries to employees. The increase in interest rates by banks is further adding to the burden, he told newspersons today.
Even while failing to assure adequate supply of power, the State Government was contemplating to hike the power tariff from April 1. The Congress (I) Government under Y.S. Rajasekhara Reddy had assured no hike in power tariff till 2014, he said.
The Government's move to treble the tax on vacant land in the industrial estates is also hitting the industries hard. “Unless the Government responds quickly, lakhs of employees will be impacted and industry will suffer through non-payment of bank loans,”he said.
How can the Government think of translating the Rs 6.47-lakh crore investment proposals it signed during the CII-Partnership summit, when the existing industry itself is being starved, he asked.
Recently, the Federation of Andhra Pradesh Small Scale Industries also resorted to dharnas to highlight the plight of thousands of small units, suffering due to power shut downs, in and around Hyderabad.