Erratic power supply,high costs push industry out of state

The industrialists claim that the environment in Andhra is more conducive for business. They say that while land is available at Rs 4 lakh per acre,power costs Rs 4 a unit and is in abundance. According to the industrialists,the minimum wages of workers is lesser than in Punjab and there is easy availability of raw material.

Badish Jindal,president of Federation of Association of Small Industries of India (FASII),said: “The MLA is also an executive member of FASII. He met us in Delhi and Mumbai and there he floated the joint venture idea on behalf of the AP government”.

He added that the industrialists have sought about 1,200 acres of land for their joint ventures. “ Raw material especially steel for the fastener and the bicycle industry is available in A P and is cheaper by Rs 5 a kg than in Punjab. Moreover our product is sold in Karnataka,Kerala,states which are all nearby. Our cost of production will reduce by more than 20 per cent if we start joint ventures in A P,” Jindal further said.

Another meeting has been scheduled for the coming month and Jindal claims that more than 100 industrialists connected with the association have given their consent to look in to more details of the project.

The industrialists rue that that high cost of land,labour and erratic power in Punjab is forcing them to shift base or at least start expansion projects outside the state. “ In Punjab,land is not less than Rs 40 lakh an acre and exceeds even Rs 1 crore per acre in many locations. And above all,we have the problem of power and labour. So we cannot even think of expanding in Punjab,” Jindal added.

‘Powercom to buy 40 per cent extra power’

JALANDHAR: WITH the state witnessing an unprecedented increase in the demand for power this year,Powercom has made arrangements to purchase at least 40 per cent extra power on a short term basis,Powercom Director (Distribution) Anil Verma said in Jalandhar on Wednesday. Usually,such short term purchases are made for three to four months during the paddy season.

Despite Powercom purchasing power,the daily deficit between demand and supply still ranges between 180 to 200 lakh units (LU). “This deficit is being met with the power cuts in the entire state. While the demand on a daily basis is around 2,150 LU,it was maximum on Tuesday with 2,164 LU. On the other hand,we have only 1,950 LU available,” said Verma.

He added: “Every year,we make 10 per cent extra arrangements for power when compared to last year. But this year,there has been an unprecedented increase in power consumption — around 20 per cent more. As a result,we are buying around 40 per cent extra power. While last year,Powercom had purchased 32,000 LU,this year they will purchase 44,000 LU on short term basis.”

Verma further said that while Powercom could import 5,100 MW each day from outside the state,on its won,it has around 3,400 to 3,500 MW of power. However,the demand is for 9,500 MW.