Friday, April 4, 2008

India’s I.P suffers 35% loss due to power shortage

by Jo Black

Indian Inc. has started feeling the pinch of power Summer with its industrial production already falling down by about 25% in February-March 2008, which would go around 35% between April-July this year as worsening power situation would further aggravate with peak summers yet to arrive.

The aforesaid estimates are made by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) on Fallout of Worsening Summer Power Situation on Industrial Production (I.P) in April-July 2008 by direct feedback from over 2000 industrial locations across the country through various Chambers.

The estimates indicate that already due to extremely erratic power situation in February and March 2008, industrial production has suffered by 25% and captive power stations within the industrial premises are running at half the capacities because of expensive fuels such as diesel and petrol that have become much more costlier.

Releasing the estimates, the ASSOCHAM President, Mr. Venugopal N. Dhoot said that industrial production suffered heavily in winters of 2007 as power deficit even than remained within the range of 18-20%. Between the month of February and March 2008, the deficit went up to around 25%, causing industrial production fall steeply.

Since, the situation in summers is unlikely to be improved upon because of constrained on generation side, Indian Inc. minimum production loss would stay around 35% as demand for power in domestic and other areas of economic activities is growing @ around 20-25% and the power utilities are unable to supply powers to industrial consumers.

The states in which power supplies to industrial locations would be most severe comprise Delhi, Uttar Pradesh, Haryana, Madhya Pradesh, Rajasthan, Mahrasthra, Andhra, Karnataka, Tamil Nadu and Gujarat. In these states, the captive power plants put up by industrial units are operating not even 50% capacities because fuels required to run such plants have become expansive and as a result of competition, industrial produce is available at cheaper rates so that the question is how does Indian Inc. compete in global market and accelerate its exports, said Mr. Dhoot.

He said that industrial locations in all these states are complaining that 40% of their capacities are running idle as the power availability and shortages ratio in most of these states is between 60-40. Industrial production naturally in such states is suffering hugely and as per the estimates made by ASSOCHAM, it will run around 35-40% in months of April-July 2008 when the heat becomes more scorching and power demand even in domestic sectors becomes priority because of social factors.

ASSOCHAM Chief also added that lack of fresh investment and modernization coupled with huge transmission losses are responsible for the grave power situation in the country which will continue.

Maharashtra, which is one of the industrailised states in the country is facing one of the worst crises with energy deficit touching about 20 per cent, facing energy deficit of over 1700 Million Units (MU) and peak deficit which exceed 4200 MW. The state of Maharashta as per feedback given to ASSOCHAM by its constituents is resorting to an average load shedding of 8-10 hours a day.

The state of Madhya Pradesh, which has a power requirement of over 3500 MU, has availability of little over 2400 MU with deficit ranging over 26 per cent. The situation is no better in Gujarat where the power deficit is approximately 13 per cent. The availability in the state is only 4780 MU against the requirement of 5500 MU. The Southern part of the country is likely to suffer energy shortage to the extent of 2000 MU particularly in Andhra, Karnataka and Tamil Nadu.

In Uttar Pradesh and Bihar, the deficit would be so use as to force its industrial locations to curtail their production by 40 per cent as the gap between availability of power in UP and Bihar and their supplies is around 1500 MU.

Jammu & Kashmir suffered a power shortage of 16% in February-March 2008 which will go around 25% and the gap between power availability and supplies would be around 1000 MU. However, in case of Delhi, the power shortage would stay around 30% with gap between power availability and its supply going up by over 600 MW in April-July 2008 on an average.

 

 

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