GEB power cut move to hit industry hard

Power to be channeled for agricultural needs from today

The Gujarat Electricity Board's (GEB) announcement that it will reduce power supply to the industry to channel it to the agriculture sector has annoyed the industry.

The notification of extra power cut for the industry will be implemented from tomorrow. This means, industries in the state will be able to function for just five days a week instead of six.

"It is very disappointing that Gujarat Electricity Board (GEB) has cut power supplies to industries without consulting them. The board generates a major chunk of its revenues from these industries," said Amit Garodia, chairman Gujarat State Council, western region, Federation of Indian Chamber of Commerce and Industry (Ficci).

"The move will have a very negative impact upon the industry, which is already burdened with the highest tariff rates," added Garodia.

Large industries, which used to run on their own captive power plants, will also be affected as GEB has doubled its tariff to 40 paise. Ficci is planning to make a presentation to the state government on the issue.

The demand of power has increased substantially in rural areas due to delayed or scanty rainfall. GEB claims it does not have adequate supply to meet the demands of both agriculture and industry.

The normal consumption of power during the normal monsoon season is around 7000 mw. In the current monsoon season, due to delayed rain, demand of power has increased in rural areas to irrigate their fields. There is a shortfall of around 1500 mw of power in Gujarat.

The industry is finding it difficult to plan production in the near future as the GEB has not notified about how long this situation will last.

GEB is also waiting for rain to stabilise the situation. "It all depends on the rainfall. So it is difficult to predict how long this situation will prevail," said a spokesperson at GEB.

In spite of recent showers in south Gujarat, GEB officials are not sure about its effect on power consumption.

"GEB's power cut to the industrial sector will have negative impact, especially on the small and medium size industry, who do not have captive power plant of their own. The production will suffer, There is an immediate need of power reforms in the state and its a long standing demand of the industry," said Piruz Khambatta, chairman, Gujarat State Council, Confederation of Indian Industries (CII).

"Industry is not happy with the GEB's move to curtail power in the industrial sector, If we look at the situation at the larger interest of the people, the industry has accepted it for the benefit of the agricultural sector irrespective of the losses that the industry has to bear," said Chinubahi Shah, president, Gujarat Chamber of Commerce and Industry.

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Power troubles loom

• GEB claims it does not have enough power to supply to both agriculture and industry
• The demand of power has shot up in rural areas due to delayed rains.
• Industries in the state will now be able to function for only five days a week