Power cuts short-circuit India’s Silicon Valley

Jaishankar Jayaramiah
Monday, Mar 01, 2010
Bangalore: Frequent power blackouts are taking a toll on the confidence of India’s Silicon Valley. Bangalore, which fetched Rs 68,500-crore foreign exchange for the country last year, is reeling under frequent unscheduled power cuts—sometimes lasting 3-4 hours. This has not only infuriated small-scale enterprises but also the 1,800-company strong IT/ITes sector in the IT city. According to estimates by the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), the power cuts are resulting the IT hub’s industrial belt losing around Rs 400 crore a day.

Bangalore requires 33 million units (mu) per day but it is currently receiving only around 30 mu. The demand may increase by another 2 mu per day during the summer months. So the worst is probably yet to come.

Talking to FE, Infosys HR head and board member TV Mohandas Pai said, “Karnataka’s power policy is a sad story and a complete failure. The power sector managed by public enterprises is not effective. The state’s power situation has only worsened in the past 30 years.”

He said the frequent power cuts ahead of the Global Investors Meet (GIM), scheduled for June in the city, would affect Brand Bangalore, which put India on the global economic map. “We need to have a radical shift in the model and the government should ensure uninterrupted power supply,” he added. Instead of planning for temporary solutions to overcome power shortages, he said the state government should plan to produce surplus power.

The IT city houses 7-lakh people working in the technology sector and there are more than 70,000 small industrial units engaging over 4-lakh workers rolling out 3,000 products. The city is also home for close to 60% of 782 large and medium manufacturing facilities in the state.

Such an industrial-friendly state deserves better power infrastructure. Low-cost airline pioneer Captain GR Gopinath, who is now chairman and managing director of Deccan Express Logistics, says the government should allow the private sector to produce and distribute power. “Let the consumer decide on where to purchase the power either from the public enterprises or from the private producer,” he said. Allowing the private players in production and distribution of power directly to consumers will improve the power supply, he said.

J Chrasta, president of Federation of Karnataka Chambers of Commerce and Industry (FKCCI), says the unscheduled power cuts are causing around Rs 400 crore loss per day to the Bangalore industrial sector