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Assocham says 2-day power holiday a death knell to SMEs

Disruptions in the production schedules would make it difficult for the SMEs to meet their supply commitments

BS Reporter Hyderabad
The Associated Chambers of Commerce and Industry (Assocham) expressed serious concern over imposition of a two-day power holiday for the industries in Telangana.

While all the segments of the industry will bear the impact, the small-scale units will face a death knell, Assocham secretary-general, DS Rawat, stated in a release on Thursday.

He said that increase in the cost of production and resultant loss in their competitiveness owing to the use of alternative energy sources could be sustained by some industries for sometime, but disruptions in the production schedules would make it difficult for the SMEs to meet their supply commitments, thereby leading to loss of business orders.  
 

Ultimately, this would lead to job loss of up to 50 per cent in the factory sector. Hence, the state government must immediately explore the opportunities to normalise power situation with the central government, Rawat said.

The Telangana government had decided to impose power cut for two days in a week for industry in the light of a steep increase in demand from the farm sector and shortage of power of about 1,000 Mw.

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First Published: Oct 09 2014 | 8:29 PM IST

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