Erratic power supply in Delhi-NCR to hit SMEs hard

NEW DELHI: Industrial units in Delhi-NCR, particularly SMEs, are on the verge of closure due to unprecedented power cuts and voltage fluctuations and their production is likely to be affected by 60 per cent, Assocham said on Wednesday.

It has proposed a unified power authority for the NCR which will bring uniformity in power supply and tariffs within the region. The frequent power cuts, especially in Ghaziabad, Noida, Gurgaon, Faridabad and Greater Noida have caused industrial units to lose 50 per cent of their planned production in the last two months.

"If this trend is not arrested, industrial units in the region would lose their production to an extent of 60 per cent," it said.

Assocham Secretary General D S Rawat said the frequent power shortages will severely impact the competitiveness of SMEs. "So, there is an urgent need to strengthen existing power distribution infrastructure in NCR Industrial estate."

Non-availability of power supply for up to 12-15 hours a day has upset the production schedules, it said. "If the power scenario remains unchanged the resultant loss in industrial production could surpass 60 per cent."

Rawat said that the worst-affected are the medium and small units that rely on grid and use mostly inefficient diesel generating sets as backup.

Power shortages have not only hit industrial units in the NCR but are also eroding productivity and efficiency in hospitals, police stations, post offices, banks, educational institutions and corporate offices.