Energy-intensive user industries such as steel manufacturers, rolling mills, ferro alloys makers and cement units are in a state of quandary over the power crisis in Andhra Pradesh.
They are battling nearly 12 hours of power cut per day, working out to 15 days of power holidays in a month, high fuel surcharge clipping away funds and revised high power tariff with effect from April 1.
An interaction with a cross-section of high-tension consumers shows that the power crisis is proving to be death knell for them.
Shiv Kumar Rungta, Managing Director of Rungta Glasstech, said that in power-intensive industries such as steel mills and ferro alloys, the cost of power works out to over 25-35 per cent of the total cost and further hike makes the units unviable.
“The production cost simply goes beyond its peers making similar products in other states. The supply of inadequate power also results in a much bigger impact making production and running the plant un-remunerative,” he said.
K.B.V.Murthy, Vice-President, Technical, NCL Industries Ltd, a cement manufacturer, said that the average power bill will shoot up from about Rs 2 crore a month to nearly Rs 3.5 crore a month, including new tariff regime and fuel surcharge adjustment.
According to Devendra Surana, President of Federation of Andhra Pradesh Chamber of Commerce and Industries, the power tariff for industries in general has gone up by over 100 per cent in the last three years. It now is about Rs 5.73 a unit, putting the finances into a spin.
Subsidised power
“As we understand, the problem is directly related to subsidised power for some sections such as domestic category and agricultural sector. Industries are not opposed to subsidy for any specific category, but the Government has to bridge the gap by providing necessary subsidy,” Surana said.