Power shortage continues to jeopardise Andhra MSMEs

Frequent power cuts continue to cripple MSMEs in Andhra Pradesh (AP), hampering their work-flow and making it difficult for them to sustain smooth operations. The recent notification issued by the state government for two-days-a-week power cut rather than a-day-a-week power cut is likely to put the manufacturing sector of the state in turmoil.

Commenting on the power shortage situation in AP, MV Rajeshwara Rao, secretary general of the Federation of Andhra Pradesh Chamber of Commerce and Industry (FAPCCI), stated, "Power cuts during peak hours will bring down the production capacity of the MSME sector, thereby also impacting their revenue contribution to the state's economy. Industries will be unable to make optimum use of their machinery and potential due to the two-days-a-week power cut and weekend power holiday."

Although the AP government has allowed companies to source power from external sources, this move is unlikely to help most small industrial units in the state to meet their power requirement.

"Provision of open market access by industries will help very few companies to fulfil their power demand during summer. Small firms with limited financial capacity to spend on power will continue to suffer revenue and production loss," said an industry official who did not wish to be named.

The production loss for the MSME sector in AP owing to the severe power crunch is estimated to hover above 50% over the coming few months.

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