Industries pay heavy price | gurgaon | Hindustan Times
Today in New Delhi, India
Jul 22, 2017-Saturday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Industries pay heavy price

It's not just residents who are feeling the pinch of rising back-up bills in the city. Amid long outages, industries are also battling production losses to the tune of 50%.

gurgaon Updated: Oct 19, 2011 01:05 IST
Sanjeev K Ahuja

It's not just residents who are feeling the pinch of rising back-up bills in the city. Amid long outages, industries are also battling production losses to the tune of 50%.

As per estimates, about 75% of the total production in Gurgaon is dependent on diesel-run captive power plants and gensets. Since the cost of producing one unit of electricity on diesel gensets is nearly R14 (DHBVN supplies power at the rate of R5 per unit), inflated power bills are a major concern for industries in the satellite city.

According to the Associated Chambers of Commerce and Industry of India (ASSOCHAM), the current power and water shortage in NCR may reduce industrial production by nearly 35-40% and severely impact the competitiveness of SMEs (small medium enterprises).

As part of an assessment by ASSOCHAM (Increase in Industrial Losses due to Power Shortages), feedback from industrial units reveals that current electricity demand at different locations in Gurgaon has gone beyond 400MW against availability of not more than 200MW.

PK Jain, former president of the PHD Chamber of Commerce and Industries (PHDCCI) and founder of the Gurgaon Chamber of Commerce and Industries, said, “The industry was barely trying to come out of the lean period of April-September but severe power shortage has worsened the situation. In Gurgaon, production losses have already touched 50%. Moreover, it's not just about shortage. Poor quality of power and frequent supply trips are also to be blamed."

DHBVN officials, however, pass the buck saying the shortage was triggered due to shortage in coal supply to thermal power plants, a couple of which have already been shut.