Post downturn, SME sector ‘powerless’ in growth push | business | Hindustan Times
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Post downturn, SME sector ‘powerless’ in growth push

Rohit Nagar, the owner of an advertising agency in New Delhi is restless due to the ongoing power crisis. Debobrat Ghose reports. Shedding some light

business Updated: Jul 06, 2012 00:15 IST
Debobrat Ghose

Rohit Nagar, the owner of an advertising agency in New Delhi is restless due to the ongoing power crisis. Apart from coughing up an additional Rs 3 lakh per annum as his energy bill, he is finding it difficult to meet deadlines, keep his staff in good humour and satisfy his clients’ demands on time.

"Had the power cut been a scheduled one, we could have changed our working hours, but here http://www.hindustantimes.com/Images/Popup/2012/7/06_07_12-buss21c.jpgit’s erratic," said Nagar. "

Nagar, like many others in the micro, small and medium enterprises (MSMEs) sector, which bucked the downturn, is facing hurdles in growth due to long and unscheduled power cuts.

In peak summer, it’s often 20-22 hours, resulting in escalation of production costs, shrinking profit margins and even closure of units. The crisis is maximum in northern and eastern states.

Echoing Nagar’s views, Gurgaon-based entrepreneurs complained of 20-22 hours of power cut over the past seven years. “It’s gradually killing small entrepreneurs, as either they have to suffer heavy losses or close down units,” said Raj Singla, state coordinator, MSME Confederation, Haryana.

“We face 12-17 hours of unscheduled cuts a day and running units on Gensets seeps away all profits,” said Rajive Chawla, president, Faridabad Small Industries Association.