Prices of raw material are increasing due to shortage and inadequate and uncertain supply position. Most of the units are manufacturing spare parts and components required by big industries located in various parts of the country.
Their agreements with the big industries in the corporate sector were made when the raw material supply position was satisfactory and power rates were not increased. Due to their recent threat of uncertainty and upward trend of the prices, the agreements and rates of spare parts and components fixed cannot be changed with the result that the units are facing crisis due to the high cost of production low profit margin.
Goklulshiragaon manufacturers association (GMA) has already submitted statements demanding deduction in power tariff which is increased without considering the plight of the industrial units. The SMA has 450 members mostly in the small and medium sector and while only three or four have their own power generation plants, others have to depend on Mahadiscom for power supply.
Even after the representation the power rates are likely to be twenty to twenty eight percent more than expected thereby adding power cost burden to the tune Rs 3 crores which is unbearable to the existing units.
The Gokulshiragaon industrial estate is established at the southern side of Kolhapur adjacent to Pune
