Electricity crisis in front of 4500 companies with an investment of crores

Only 3-4 per cent companies are self-sufficient in power generation

VAIBHAV PARWAT

Aurangabad, April 12:

Entrepreneurs in the city’s industrial estates, who have been buying electricity at exorbitant rates for years despite the highest taxes being levied by the government, are panicked by the impending power crisis. The question arose as to how to run the businesses in case of power crisis in front of 4,500 small and big companies with an investment of Rs 20,000 crore in the district. Meanwhile, only 3-4 percent of the industries in the district are self-sufficient in electricity and have set up solar projects.

Only 3-4 per cent of industries are self sufficient

The State government allocates crores of rupees every year for conventional power generation. The government subsidizes industries and the general public to encourage solar power generation. However, the grants are allocated after completion of the project. The project comes at a huge cost so often it becomes unaffordable.

Production might get affected by 40 per cent

If there is a power crisis in the near future, it will affect 40 per cent of production in various companies. The sector recently recovered from the corona crisis. If there is a power crisis, the industrial economy will again nose dive. Therefore the government should find an alternative way, said CMIA president Shivprasad Jaju.

Burden falls on companies

Maharashtra has the highest power tariffs for industries than other states. Entrepreneurs pay their electricity bills regularly. However, due to power outages and other issues, the burden falls on companies. There is already a huge cost involved in transporting manufactured goods from other states. If there is a power crisis, companies will have to make additional investments in generators and fuel. We have been demanding a reduction in power tariff. Companies will be left with no option but to move to other states, said Abhay Hanchanal, former Massia president.

Costs Rs 35-40 to generate one unit of power

Alternative arrangement of generators is unaffordable to all companies. It costs Rs 35-40 to get one unit of electricity from a generator. It is possible for large industries, however small businesses do not have a generator. This raises the question of what small entrepreneurs should do in the event of a power crisis as generators are not affordable to small businesses, quizzed industry experts.