Don’t miss the latest developments in business and finance.

Power cuts to hit SME sector hard

Image
BS Reporter Chennai/ Bangalore
Last Updated : Jan 21 2013 | 12:40 AM IST

The growing power crunch in Karnataka will have a huge impact on the small and medium industries in the state, said the Federation of Karnataka Chambers of Commerce and Industry (FKCCI). The state has small and medium industries like the textile, machine tools, automobile ancillary among others.

The frequent power cuts will hit the industry which is already facing demand recession said J R Bangera, FKCCI President, on the sidelines of the national executive committee meeting of the Federation of Indian Chambers of Commerce and Industry.

“The industry is already facing trouble due to the demand recession and high interest rates. The power shortage will add to their woes. In order to tackle the situation, the government has to look at various means like co-generators, and other sources like wind and solar power,” said J R Bangera.

According to the government, the reasons for the present power shortage in the state is due to the unavailability of coal for its thermal power stations. State energy minister Shobha Karandlaje on Monday said the coal supply to thermal power plants in Raichur and Bellary had been disrupted due to the Telangana agitation.

When asked of the minister’s remark, Bangera said, the Telangana agitation started long back and the government had to be ready to face such emergent situations.

Further, he said, the state has to use the thermal power stations in the state to the fullest extent which will help create an additional 1,500 Mw extra power.

The minister also had said that the power supply to the state from the central grid had also been affected by the Telangana agitation. The state used to get 1,200 Mw daily from central grid but the amount has now come down to 900 Mw. FKCCI also said, the government should preserve the power from hydel projects for summer. The demand from the agriculture sector is only around 10-12 per cent. But, as and when the demand increases, the government should be prepared to face the challenge.

Also Read

First Published: Oct 12 2011 | 12:44 AM IST

Next Story