Andhra Pradesh
Manufacturing sector bears brunt of power crisis
V. Rishi Kumar/ Business Line

Hyderabad, March 12

Severe power-cuts and power holidays in Andhra Pradesh are causing serious concerns to high tension (HT) consumers, affecting the manufacturing sector in particular.

They expect much tougher times during the summer months.

Even the IT industry, which has been assured dedicated feeders, is at times facing hardships, according to industry representatives.

Demand-supply gap

The overall demand-supply gap is now estimated at 25-30 million units (about 1000-1200 MW) with the peak requirement of 260 mu forcing AP Transco and discoms to impose cuts on all consumers mainly to divert the power to ensure seven-hour supply to the farm sector for the rabi crop.

Delay in commissioning couple of projects, including Konaseema gas plant and teething problems faced by a 500-MW recently commissioned plant has added to the State's power woes. In addition, while the gas-based projects commissioned last year from KG Basin fields have helped add about 2,800 MW, about 1,400 MW was out of generation due to annual maintenance and other problems.

The President of Federation of Andhra Pradesh Chamber of Commerce and Industries (FAPCCI), Mr K. Harishchandra Prasad, told Business Line, “It is unfortunate that we are faced with such a situation. Everybody is caught unawares. Power cuts of three days are simply unmanageable for small and medium enterprises in particular.

“Such a situation comes through only by bad planning. We are trying to take up the matter with the Government and see how this unilateral decision could be handled better.”

The Chairman of Confederation of Indian Industry, AP region, Mr Y. Harish Chandra Prasad, said, “If you analyse the problem, there is clear bungling. The Government anticipated additional power would come into the grid. It failed to place tenders for additional power supplies, unlike its counterparts in Tamil Nadu and Karnataka had done.

“The entire process of tendering takes time. In the meantime, the cost of power has also gone up.”

Open access

While the State recently agreed to CII's request to provide open access for industrial consumers, small units would not benefit by this move.

According to Government sources, the peak energy demand has increased from about 157 million units per day in 2004 to 255 mu per day in 2010, a growth of 62.4 per cent. The peak demand is up from 7,613 mw to 11,116 mw in 2010, an increase of 46.04 per cent. Consumers have increased from 1.57 crore in 2004 to 2.2 crore in 2010.