Scheduled power cuts make industries suffer in Punjab

The state is facing severe power crisis due to ongoing paddy season, when it is committed to give eight-hour uninterrupted supply to the farmers

Industries in Punjab, especially those which consume large supplies of electricity (100 KW and above), are reeling under severe power crisis. They have to observe three days weekly off, as directed by the Punjab State Power Corporation Limited (PSPCL), due to power shortage in the state.

Senior PSPCL officials mentioned that the state is facing severe power crisis due to the ongoing paddy season, when the state is committed to give eight-hour uninterrupted supply to the farmers.

The officials mentioned that the demand and supply gap has widened considerably and there is shortfall of about 2000-2500 MW. The demand for power in the state has risen sharply on account of rapidly increasing use of electricity for agricultural operations, progressive industrialisation, high standard of living and intensive rural electrification programme.

Speaking to Business Standard, AK Kohli, an industrialist from Phagwara said, "due to scheduled power cuts, industry is suffering a lot. There is a production loss to the tune of 35-40 per cent. Further, due to power shortage, we would not be able to fulfil our export obligation. This is a very precarious situation and we apprehend if the situation continues for a long time, the buyers might prefer other countries over India. We fear we might lose precious foreign revenue."

Echoing similar sentiments, an industrialist from Jalandhar said, " as per the directive, the industrialists have to observe compulsory three days weekly off. But we can't cut the wages of workers and we have to pay them for full week. So, how will we sustain as it will increase the input cost?"

Industrialists mentioned that the shortage of power cut is affecting the export orders. They added, "We can't sustain on generators as its operating cost is about Rs 12-13 per unit, while the power supplied by the state costs Rs 7.50 per unit."

Another industrialist added that the banks do not give any relief due to the power cuts. "The banks have to be paid interest on the advances given to the industry." he said.

It is also worth mentioning that the installed power generation of the state was 7035 MW as on March 31, 2012 and the peak unrestricted demand was about 9600 MW in 2011-12.