Power crunch impeding industrial growth: Industry

Sub-optimum availability of power to the industry is one of the main impediments in the path of industrial growth, PHD Chamber of Commerce and Industry president Satish Bagrodia said here.

“Power crunch not only impedes the growth of industry, it also affects the profitability due to the higher cost of alternative fuel to run the units,” he told Business Standard on sidelines of a foundation laying ceremony of PHD House here.

He noted power crisis was a pan-India phenomenon and the situation in the northern region was equally worse in all the states, including Uttar Pradesh.

“The power situation in UP could be somewhat worse compared to other states such as Punjab and Haryana, but all the northern region states are facing power crisis,” Bagrodia lamented.

Earlier, UP Governor B L Joshi unveiled the foundation stone of PHD House.

In his address, Joshi admitted that UP was facing power crunch and the single window system needed to be made more effective to boost the industrial sector.

He called upon the Chamber to institute a cell for handholding of small and new industrial units to encourage entrepreneurship in the state.

“I hope that the industry would be more pro-active in its approach and explore the vast opportunities in the state,” he stressed.

Bagrodia said special attention would be given to enhancing the skill of member companies in UP and developing effective partnerships with all stake holders, including members, industry associations and the state government.

PHDCCI UP committee chairman U S Halwasiyasaid the Chamber was looking forward to the implementation of Goods and Service Tax (GST) next year.

“GST would plug the discrepancies in tax collection, thereby checking corruption, increasing tax net and realisation for the government. The effective tax rates for the consumers would come down under GST,” he added.