ASSOCHAM Proposes Formation Of Unified Power Authority For NCR

Industrial units in Delhi-NCR, particularly small and medium enterprises, are on the verge of closure due to unprecedented power cuts and voltage fluctuations and their production is likely to be impacted by 60 per cent, according to apex industry body the ASSOCHAM.

The frequent power cuts, especially in Ghaziabad, Noida, Gurgaon, Faridabad, Greater Noida, Bhadurgarh, Sonepat etc.  have caused their industrial units loose 50 per cent of their planned production in the last two months and if this trend is not arrested, industrial units in the region would loose their production to an extent of 60 per cent, reveals the ASSOCHAM.

ASSOCHAM Secretary General, D S Rawat said that already their production has been reduced to the extent of 50 per cent and the competitiveness of SMEs will severely be impacted. So there is an urgent need to strengthen existing power distribution infrastructure in NCR Industrial estate.

The feedback received directly from the industrial units reveals that current electricity demand of different industrial locations in entire Gurgaon has gone beyond 1600 MW against its availability of 1400 MW.

Non-availability of power supply for units sometime gone up to 12-15 hours a day which has upset the production schedules and if the power scenario remains unchanged the resultant loss in industrial production could surpass 60 per cent in Gurgaon Industrial unit. The other units that might lose their clientage include BPO, KPO and other services sector.

Rawat also said that the worst affected are the medium and small units that rely on grid and use mostly small and inefficient diesel generating sets as backup.  He further said that if corrective measures are not taken, the power situation would further aggravate.

The power availability in the Ghaziabad has remained below par; the industrialists have been reporting 12 to 15 hour-long outages on a daily basis. Industries run on diesel generators despite all the promises. About 3,000 industrialists include micro and small medium enterprises have already packed up and left the place altogether, reveals the ASSOCHAM paper.

However, in Faridabad, the locations of heavy engineering industries are more pronounced and their captive power units are unlikely to feed them with required power supplies.  The industrial loss in the region is expected to go beyond 60% and would suffer heavily. This power shortage has impacted the production capacity in places like Mathura Road, Sector 23, 24 etc.

The power shortages have not only hit industrial units in the NCR but are eroding productivity and efficiency in hospitals, police stations, post offices, banks, educational institutions and corporate offices and may lead to alarming situation if not arrested now.

ASSOCHAM estimates reveal that approximately 300-600 MW of power shortage is experienced each day in entire Noida region especially in areas like Noida Phase II, Sector 2, 8, 9, 10, 50, 51, 62 and Surajpur belt during summers.   The worst power hit sectors in Noida industrial units are in SSI, engineering and spare parts units, export houses, BPOs & call centers & media offices etc.

“If corrective measures are not taken, the power situation would further aggravate and might create even law and order problem for UP administration”, warned Rawat.

The ASSOCHAM has, therefore, mooted the proposal for the formation of unified power authority for the NCR which will bring uniformity in power supply and uniform power tariff within the region.