AP industry loose Rs 31,750 Cr due to power cuts
Hyderabad, Dec 21 (INN): The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) has claimed that the industry has suffered a production loss of Rs 31,750 crore on account of 40 percent power cut it had in the last 14 weeks.
A delegation led by FAPCCI president VS Raju called upon Chief Minister N Kiran Kumar Reddy at the State Secretariat here on Wednesday and told him that many industrial units have become sick and many are on the verge of sickness.
Raju emphasized that it was not just the loss of production and consequent financial loss alone that is causing concern to FAPCCI but the loss of jobs, thousands and several thousands of them, is a major concern to FAPCCI.
"Many micro and small industrial units are in hapless condition and many medium and large industries are running into serious financial difficulties. Cumulatively the good image of Andhra Pradesh as preferred destination for investments is getting affected," the FACCI chief said.
Raju brought to the notice of the Chief Minister that in coming months of January to May the power shortage scenario would deteriorate further with shortages rising to such high levels as 20 to 40 percent.
With these expected shortage of power the industry would suffer a perilous loss of Rs 70,000 crore or more in the coming five months, adding further economic and human distress, on account of increasing job losses, in the State.
Making a power point presentation, FAPCCI vice-president Devender Surana brought to the notice of the Chief Minister that all these 14 weeks the average energy shortage was only 10 to 12 percent but the industry suffered a high power cut of 40 percent and requested the Chief Minster to see that the productive sector like industry should not be imposed a power cut more than the average power shortage.
The FAPCCI delegation also complained of delays in disbursing the power subsidies, investment subsidies, and tax incentives to industry. It also took up the issue of 5 per cent vat charged to solar power sector, whereas in the States like Tamilnadu, Maharashtra, Jammu and Kashmir and Orissa there is no vat on solar power.
The Chief Minister assured the FAPCII delegation that power shortages would be overcome soon. He said that two power plants would be restored and that the industry will be then saved from power cuts to a large extent and that from December 25, the power cut will be reduced to one day only.
Hyderabad, Dec 21 (INN): The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) has claimed that the industry has suffered a production loss of Rs 31,750 crore on account of 40 percent power cut it had in the last 14 weeks.
A delegation led by FAPCCI president VS Raju called upon Chief Minister N Kiran Kumar Reddy at the State Secretariat here on Wednesday and told him that many industrial units have become sick and many are on the verge of sickness.
Raju emphasized that it was not just the loss of production and consequent financial loss alone that is causing concern to FAPCCI but the loss of jobs, thousands and several thousands of them, is a major concern to FAPCCI.
"Many micro and small industrial units are in hapless condition and many medium and large industries are running into serious financial difficulties. Cumulatively the good image of Andhra Pradesh as preferred destination for investments is getting affected," the FACCI chief said.
Raju brought to the notice of the Chief Minister that in coming months of January to May the power shortage scenario would deteriorate further with shortages rising to such high levels as 20 to 40 percent.
With these expected shortage of power the industry would suffer a perilous loss of Rs 70,000 crore or more in the coming five months, adding further economic and human distress, on account of increasing job losses, in the State.
Making a power point presentation, FAPCCI vice-president Devender Surana brought to the notice of the Chief Minister that all these 14 weeks the average energy shortage was only 10 to 12 percent but the industry suffered a high power cut of 40 percent and requested the Chief Minster to see that the productive sector like industry should not be imposed a power cut more than the average power shortage.
The FAPCCI delegation also complained of delays in disbursing the power subsidies, investment subsidies, and tax incentives to industry. It also took up the issue of 5 per cent vat charged to solar power sector, whereas in the States like Tamilnadu, Maharashtra, Jammu and Kashmir and Orissa there is no vat on solar power.
The Chief Minister assured the FAPCII delegation that power shortages would be overcome soon. He said that two power plants would be restored and that the industry will be then saved from power cuts to a large extent and that from December 25, the power cut will be reduced to one day only.
News Posted: 21 December, 2011
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