25% MSMEs in North India on verge of closure: ASSOCHAM

By admin July 22, 2014 1:45 pm IST

Due to unprecedented power crisis in northern India, over 25 per cent micro, small and medium enterprises have come to the verge of closure due to their inability to use diesel-based power generation, according to information received by apex industry body ASSOCHAM.
“The worst affected states are Punjab, UP, Haryana, Rajasthan and Delhi,   thereby threatening the livelihoods of thousands of workers,” said D.S. Rawat, Secretary General of ASSOCHAM while stating his observations.
In its survey released last week, ASSOCHAM had stated that the industrial production is likely to fall by 40 per cent due to frequent power outages in the aforesaid regions that are also coping with severe heat wave.
Due to extreme power deficit, industrial production in states of Uttar Pradesh, Andhra Pradesh, J&K, Haryana, Punjab, Rajasthan, Karnataka, Tamil Nadu, Maharashtra would have to be curtailed to the extent of 30-35 per cent particularly in manufacturing units as these have no alternative means to produce power, according to ASSOCHAM.
The feedback received by ASSOCHAM is based on the latest power situation in leading states that have concentration of industrial presence at substantial level discloses that in states such as Uttar Pradesh Madhya Pradesh, Maharashtra, and J&K energy deficits which was around 20-25 per cent in April-May would go beyond 30-35 per cent in June –July, further noted ASSOCHAM.
Uttar Pradesh and Andhra Pradesh are two states in which power cuts exceed 10-12 hours a day and face the worst energy crisis which will further deepen in the absence of corrective measures and therefore industrial locations in these two states would have to curtail their industrial production to the extent of 45 per cent, said Mr Rawat.
Uttar Pradesh, which is one of the industrialised states in the country is facing one of the worst crises with energy deficit touching about 11.2 per cent, facing energy deficit of over 924 Million Units (MU). The state of Uttar Pradesh as per feedback given to ASSOCHAM by its constituents is resorting to an average load shedding of 10-12 hours a day.

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