FAPCCI for industrial Discom

Special Correspondent
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Paints grim picture of power availability for industry in the State

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) has mooted an exclusive power distribution company (Discom) for the industry with separate feeder lines to ring fence it from the crisis.

The organisation was not seeking physical movement of assets of the existing Discoms but wanted separation of feeders from other sectors while creating the industrial Discom, FAPCCI president Devendra Surana told a press conference on Wednesday.

He said an industrial Discom exclusively was not set up anywhere in the country but variants of it were found in Gujarat where 70 per cent of the feeders were meant for industry. He painted a grim picture of power availability for the industry in the State since 12,000 units were already sick and the closure for many more units was imminent.

Mr. Surana added that only 50 per cent of the demand for power by the industry was met in the last 15 to 18 months, resulting in a negative growth rate.

The power cost to 5 MVA industrial consumers with a load factor of 60 per cent went up from Rs. 3.51 to Rs. 7.19 a unit in the last three years.

He blamed supply of free power to agriculture as the single biggest factor for shortage and imposition of higher tariff burden on other consumers. More than 50 per cent of power supply to agriculture was wasted, leading to shortage to other sectors, as the pump sets were running with only 50 per cent efficiency.

The subsidy requirement by all four Discoms was estimated at Rs. 14,866 crore which was three times more than the approved subsidy of Rs. 5,884 crore, leading to tariff hike. A sum of Rs. 8,865 crore was collected from industry as fuel surcharge adjustment.



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