Fate of industries hangs in balance
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Industrialists are concerned about the timing of the power tariff hike. It will push small and medium enterprises, which are already clamouring for more power, into deeper crisis
Industries are not as much upset by the power tariff hike announced by the government on Friday as the time of the increase.
The hike would push the small and medium enterprises, which are already clamouring for more power with production capacities pruned to about 40 per cent, into deeper crisis, they fear.
“Tariff hike is not an issue but the timing of the hike is what concerns us more,” lamented G.K. Basha, senior vice-president, Guindy Industrial Estate Manufacturers Association. With only about 68 hours of power available in a week because of erratic power supply and two power holidays, most SMEs are in deep financial crisis, he explained.
“Due to only 40 per cent capacity utilisation following power cuts, we are not able to pay salaries nor pay back our loans. So much so, about 90 per cent of SMEs across the state are on the verge of being declared sick,” Basha said.
The government has been irresponsible in not adding to the power infrastructure of the state since the 1960s and the current situation is an outcome of this, he said.
“We are ready to pay more for power but all we want is uninterrupted and quality power,” asserted R. Selvaraj, president of the Ambattur Industrial Estate Manufacturers Association.
Industry is responsive to the state’s need to hike power tariff after nine years but want to be able to operate their units at full capacities. “For this, power cuts should go,” said Selvaraj.
The state gives uninterrupted and quality power to all MNCs investing in the state, but the sons of soil are left at lurch, complained SME unit owners. “Though we are promised 230 volts of power, we get only 160-180 volts,” Basha claimed.
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