Punjab industry hit by severe power cuts

Industries in Punjab have been hit hard by severe power cuts. Production has fallen by 20-35 per cent and in certain cases as much as 40 per cent due.

With an average of six to eight hours' power cuts daily, power supply in the state remains erratic. Besides, the industries have to shut down for two days a week due to the power shortage, as per the directions of the Punjab State Electricity Board (PSEB).

In Jalandhar, the production of engineering goods has gone down by 20-30 per cent.

Talking to Business Standard, All India Hand Tools Panel (Engineering Export Promotion Council) Chairman Sharad Aggarwal said, "production of hand tools has gone down by almost 20 per cent. Exporters are not able to meet their obligations. Apart from witnessing 3-4 hours power cuts during peak hours, we are also facing 3-4 hours daily intermittent power supply. Moreover, from today we have to shut shop for two days a week which will make things worse."

"As diesel is costlier here than in neighbouring states, use of diesel gensets leads to high input costs. What's more, even when we try to deploy gensets, we have to seek permission from the Punjab State Electricity Board and the Chief Electrical Inspector," he added.

To solve the state's power woes, Aggarwal suggested that the state government enter power purchase agreements with other states before the end of summer, besides exploiting hydro electric generation fully.

In Ludhiana, production of steel plants has been hit by more than 30-35 per cent. Sources said monthly production of industries in Ludhiana was estimated at Rs 5,000 crore but the unprecedented power cuts have shaved off one third of the expected production.

The situation is worse in Goraya, which is witnessing voltage drops. An industrialist, Ashwani Kohli, said, "Apart from daily power cuts we are not getting proper voltage. In place of 410-415 voltage, we are receiving 360-370 volts, which has damaged our panels and machinery".

If things don't improve, we will not able to fulfil our export obligation. As it is, we are 10-12 days behind schedule and importers are imposing penalty on us. The government always talk about steps to increase exports but in reality they are least bothered."

The hike in diesel prices, which is used to run diesel generators, coupled with the increase in power tariffs, has aggravated the problem.

The power situation is no better in Amritsar where entrepreneurs are witnessing daily five hours cuts, on top of the three hours' cut during peak hours.