AP industries get power cut shock

Visakhapatnam: The announcement by the Discoms following issuance of an order on their plea by the AP Electricity Regulatory Commission (APERC) for restriction and control (R&C) measures including a weekly holiday for the industries with effect from September 5 has left the entrepreneurs fuming.

They wonder how the State can progress with interrupted production if power supply is restricted in such a way by without putting a contingency plan in place to tackle such situations.

APERC issued the order after the AP Central Power Distribution Corporation Limited (APCPDCL), on behalf of all the three distribution companies, viz APEPDCL, APCPDCL, and APSPDCL submitted a proposal seeking approval of the commission to impose certain restrictions on the power supply to industries under section 23 of Electricity Act, 2003.

In exercise of powers conferred by Section 23 read with clause (k) of sub-section (1) of Section 86 of the Electricity Act, 2003 (36 of 2003) and all powers enabling it in that behalf, and clause 16 of the general terms and conditions of supply, the APERC imposed following R&C measures on the industrial consumers with effect from September 5, which will be operative till 24:00 hours of September 15.

R&C measures: 30% cut in contracted demand for 24 hours for continuous process industries and only one shift allowed during the daytime between 6 am. and 6 pm. for 8 hours duration, and shifts after 6 pm not allowed for non-continuous process industries. One power holiday per week has been declared. Roster shall be issued by each Discom so that equal load relief happens in MW terms every day. The order stated that industries exempted from the R&C measures include bulk drugs, pharmaceuticals, medical oxygen and rice milling units.

Reacting to the decision, AP Federation of Chamber of Commerce & Industry vice-president V Ramakrishna told Bizz Buzz that regulation in power supply has come as a big setback for the industries mainly MSMEs and the large industries at a time when they are on path of recovery after experiencing severe hardships during the pandemic. The decision will hit the production very hard at a time when the ferroalloys units are on verge of closure due to hefty power tariff hike in various forms like true-up charges and fuel surcharge adjustments.”

DT Raju, Executive Chairman, Vijayanagar Biotech Ltd, and former AP president of CII, said: “The decision exposes beyond doubt 100 per cent failure in planning process of the authorities. With a vision, they should have anticipated such a problem and made arrangement to procure power from other agencies/States to continue unhindered production at various industrial units.”

He said the managements will have to earn the wrath of their clients because of short-supply due to curbs-imposed power usage. MSMEs, which employ a large workforce, will suffer a lot due to the decision, he remarked. AP Chamber of Commerce and Industry Federation president Pydah Krishna Prasad also expressed his shock at the decision and felt that little planning in advance could have helped in tiding over such an embarrassing situation.

National Association of Container Freight Stations (NACFS) vice-president G Sambasiva Rao said it is the responsibility of the government to supply power 24x7 as power is a critical component for industrial production. He said East of Doing Business will not be there if cost of production goes up due to restrictions in power supply, he opined.

Sreedhar Kosaraju, Chairman, DeepTech Naipunya Foundation, said: “We understand the necessity of power cuts due to supply supply-demand imbalances because of unprecedented weather conditions. However, it’s crucial to comprehend that IT/ITeS industry serves as an essential service provider, offering 24x7 back-office support to global clients.” He said therefore, the IT industry requests IT and Industries Minister Gudivada Amarnath to intervene and secure an exemption for IT and ITeS sector from scheduled power cuts.

Sudhir Mulagada, a foodgrain exporter, said the decision will send wrong signals to the investors’ community and hoped that steps will be taken to procure power from other sources and restore uninterrupted power supply at the earliest.