Additional PPAs needed to support industries

The Federation of Andhra Pradesh Industries (FAPI) today suggested that the Government should enter into long term power purchase agreements (PPAs) of 2,000 MW to save the industries from power cuts in Andhra Pradesh.


In a statement today, Mr B.V. Rama Rao, President, said that the industries are faced with severe hardship barely able to manage to run them at 50 per cent capacity, as 12 working days now have become no productivity days due to power cuts.

The industries will be adversely hit due to loss of productivity and its impact on contracts due to power shortage impacting output.


This in turn will mean difficulty in generating adequate revenues, he said.

The bank loan instalments would be difficult to service if such a situation persists. This could also potentially lead to job losses.

The FAPI suggested that the Government needs to segregate agricultural and industrial feeders and a separate power supply agreement signed with industries, which will streamline the power management.

Mr Rao said that the cost of diesel has gone up which makes it financially unviable to generate power from DG sets when it comes to captive production facilities.

If such a situation continues, the industries based in Andhra Pradesh may consider shifting their units to the other States, he contended.

He said that a meeting of the industries with the Chief Minister, Mr N. Kiran Kumar Reddy, and other officials of the energy sector, would be held on March 24 to work out a viable alternative.
Source: BL


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