Power cuts Andhra Pradesh growth

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It is now official! The directorate of economics and statistics has revealed that the industrial growth in the state is on the negative side even as the industry blames it on erratic power supply.

The quick estimates prepared by the directorate for the period between April and August of the current financial year showed that the index of industrial production registered a constant fall since June, resulting in overall negative growth of 1.7 per cent over the corresponding period in 2011-2012.

In August, the general index stood at 261.1 which is 1.5 per cent less over the last year and significantly the general index at national level for the same month registered 2.7 per cent growth.

The quick estimates revealed that the manufacturing sector was the worst hit, registering a negative growth as high as 3.5 per cent followed by electricity sector with 2.6 per cent.

Mining and quarrying was the lone sector that fared well, with 12.7 per cent growth.

“We are anticipating the negative growth because of problems with power supply,” a senior industries official said. He added that the coming days are expected to be far worse because of the inability of state power utilities to increase the supply.

“What more one can expect about industrial growth when the state is forcing the closure of industry for 18 days in a month because of its failure to supply power,” says Federation of Andhra Pradesh Small Industries Association president A.P.K. Reddy.

Quoting a recent Reserve Bank of India report, Mr Reddy said 9,600 industrial units worth `11,000 crore turned sick in the state during last one year.