Power cuts may cause 40% dip in industrial production:Assocham

UP, Andhra Pradesh worst affected by energy crisis

Continued power outages in various parts of the country are adversely affecting domestic industrial production, which may fall by 35–40% in June-July, industry body Assocham said on the basis of feedback received from its various constituents in the northern, southern and western regions. 

In April-May 2014, industrial production in these regions was curtailed by about 30% due to power cuts of up to 20–25%. 

"The regions were reeling under tremendous power shortage in April and May and the rains added to it as defects in the transmission system," said Assocham Secretary General, D S Rawat. 

Assocham feedback is based on the latest data in the power sector in leading states that have substantial industrial production. 

"Uttar Pradesh and Andhra Pradesh are two states in which power cuts exceed 10-12 hours a day and face the worst energy crisis which will further deepen in the absence of corrective measures, and therefore industrial locations in these two states would have to curtail their industrial production to the extent of 45%,” Rawat said. 

The state of Uttar Pradesh, which has a power requirement of over 8,282 MU, has little over 7,358 MU of available power with deficit ranging over 11.2%. The situation is no better in Andhra Pradesh where the power deficit is approximately 12.1%. The availability in the state is only 7,976 MU against the requirement of 9,070 MU.