Thursday, June 26, 2008

NCR industrial units spend $350m on diesel

by Jo Black

The Associated Chambers of Commerce and Industry of India (ASSOCHAM), says that about Rs 14 billon ($350 million) per annum is spent on diesel for running generator sets by about 40,000 industrial units located in and around national capital region (NCR), to meet their production targets.

Rough estimates shows that some 350 million litre of diesel is consumed by these industrial units.

Failure to abstain from making use of Gen Sets in the NCR belt by these industrial units would cause them to fall short of supplies commitments to vendors by over 40%, as the power situation in it remain extremely erratic and disruptive, adds the Chamber’s assessment.

The NCR belt, during peak and lean production hours, on an average suffer power scarcity for 8-10 hours a day, which has forced them to install on average between 4-6 generator sets in each industrial location.

It not only causes environmental and sound pollution but also is a sheer wastage of diesel consumption which otherwise should have been used for running road transport, says Mr. D.S. Rawat, Secretary General ASSOCHAM.

The assessment of the ASSOCHAM compressed in a brief study, however, points out that over 38,260 small medium & large industrial units including BPOs, ITes companies etc. are operating in Ghaziabad, Gurgaon, Noida, Faridabad, Meerut, Loni, Ballabgarh, Bahadurgarh etc.

These units roughly consume Rs.1.17 billion ($29.25 million) per month of diesel to get over disrupted and erratic power supplies to meet and honor their production and supplies commitments.

 

 

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