Industrial units face erratic power supply in Haryana

Can a state sustain 51 special economic zones (SEZs) (the ones that have got in-principle/formal approval) if it does not have enough power to run its industrial units? Industry in Haryana has been suffering due to erratic power supply and long power cuts.

"We cannot rely on power supplied by the state power department. We get power intermittently, for about six to eight hours a day," a manufacturer said.

Most units depend on captive power and incur substantial expenses on running gensets.

An entrepreneur in Gurgaon running an auto ancillary unit told Business Standard: "I spend about Rs 15-20 lakh as fixed cost for captive power, apart from Rs 1 lakh a week as running expenses."

Industrial units pay hefty installation fees to the state power department depending upon the load and simultaneously invest an equal amount in captive power, they say.

Scientific instrument units in Ambala are in the doldrums because some devices they make need 220 volts-50 htz, which gensets cannot supply.

Power tariff in Haryana is Rs 5 per unit and captive power costs Rs 10-12 per unit (depending upon the size of the generator). In Punjab it is Rs 4.35 per unit (that includes octroi, electricity duty on transmission charges, and excise). Haryana of late introduced fuel surcharge adjustment and thus revised the power tariff in the state.

"The situation is the worst in 40 years," an industrialist said.

"Our business has been shrinking and many of the larger players have relocated in other states," he said.

Members of the Haryana Chamber of Commerce and Industry said the additional thermal power generated in the state in the next few years would not be able to bridge the gap between demand and supply.

Industry is sceptical over the announcements made by the chief minister to increase the installed capacity from 4,000 Mw to 10,000 Mw in the 11th five year plan (2007-12).

The Deen Bhandu Chhotu Ram Thermal Power Plant in Yamunanagar (600 Mw), Rajiv Gandhi Thermal Power Plant in Hissar (1,200 Mw), Jhajjar Thermal Plant (1,150 Mw), Aravali Thermal Plant (750 Mw), Yamunanagar Extension third unit (300 Mw) and Faridabad gas-based power plant (432 Mw) are in the pipeline.

Most of the projects often suffer with change of guard and since the present government has to face elections in early 2009 the future is uncertain, industrialists say.