Rajasthan industry reels under power cuts

Trade bodies fear move could hit more than 350 industrial units

Trade bodies here have flayed the Rajasthan government's decision to impose 24-hour power cut on industrial units consuming 1 Mw or more daily.

The state government from Sunday evening has resorted to power cuts due to a shortage of 7 million units of electricity daily.

"By imposing power cuts we will be able to save 30 lakh units of power daily", an official of the energy department said.

The trade bodies, while flaying the move, said the decision would adversely affect over 350 industrial units in the state.

"These include textile, cement and fertiliser companies with large investments and interests in Rajasthan. These units also provide employment to a large number of people in the state. This is leading to a huge loss of production and revenue not only to industrial units, but also to the government in terms of excise and sales tax," Confederation of Indian Industry (CII) Rajasthan state council said.

Shripal Choudhari, vice-chairman, CII Rajasthan state council, said at least 50 per cent power should be provided, as some industries were totally dependent on power supply from the electricity boards.

"Moreover, we suggest, that in case of any need to impose these cuts, sufficient lead time be given to industry to prepare for such eventualities," he added.

Acute power shortage, leading to frequent power cuts had compelled industries in Rajasthan to make heavy investments in captive power plants to safeguard their business interests.

However, in Budget 2004, the government had levied a cess on captive power, which had hampered the competitiveness of companies dependent on captive power.

"We request the government to remove this cess on the setting up of captive power units as well as provide new schemes for setting up these plants. This will assist the government in creating additional power that could be diverted to the agriculture sector", he added.

"Industries in the state will definitely face severe losses due to these 24-hours power cuts imposed by the state government. At the same time, owing to pressure from various industry organisations, the state government has assured to lift the power cuts from Tuesday," Sitaram Agarwal, president, Federation of Rajasthan Trade and Industry said. He said if the government failed to lift the power cuts, industrial associations would take up the matter with the chief minister and also with the power companies.

"With these kind of power cuts, I don't think industrialisation can take place in Rajasthan,"the president of Federation of Rajasthan Trade and Industry added.