UP Inc flays power theft drive against MSMEs

Micro, Small and Medium Enterprises (MSMEs) have flayed the proposed drive of Uttar Pradesh Power Corporation Limited (UPPCL) against the alleged power theft in the sector.

Industry chamber Indian Industries Association (IIA) has said not only the allegation was unfounded, the drive would breed corruption and result in unnecessary harassment of MSME units. Association President Anil Gupta further censured a recent news report that said MSMEs in general were the main culprits in power theft. He said the report had hurt the sentiments of a sector, which was well recognised as an engine of economic growth. Uttar Pradesh is home to an estimated one million MSMEs.

“According to statistics, industry consumes 25 per cent of electricity, but accounts for over 38 per cent of revenue,” IIA Executive Director D S Verma told Business Standard. He said there could be individual cases of power pilferage, but not without the complicity of authorities.

“The state power utility should first check the power outflow and consumption pattern under the respective sub-stations before planning to raid the MSME units,” he added.

Verma said UPPCL should try to fix the consumption and revenue patterns in the domestic and agriculture sector before pointing fingers at the industry. UPPCL, which had undertaken a power theft drive last month, plans to undertake a similar campaign from December 10 against the erring units.

“Similar drives in the past have not unearthed any significant theft by the MSMEs,” former IIA General Secretary Mukesh Tandon claimed.

Meanwhile, IIA is writing a letter to UPPCL CMD Navneet Sehgal seeking his attention to the issue.