Over 50% drop in industry production due to power cuts in Haryana

Frequent power cuts has adversely affected industry in Haryana state and night shifts in almost every industrial town in the state including Panipat handloom industry, plywood & metal industry at Yamunanagar – Jagadhari , nut-bolts industry at Rohtak, shoes & rubber goods industry at Bahadurgarh,  automobile industry at Gurugram , steel industry at Hisar and scientific goods & mixi industry at twin city Ambala are facing more than 50% drop in production and most of the units working in three shifts have already discontinued night shift in their factory due to power cuts declared by the government. According to industry entrepreneurs it is not possible for them to continue production on diesel generating sets due to unaffordable diesel prices as such production in most of the industrial units in the state has dropped from 40 to 70%, besides large number of workers have  become jobless and started shifting to their native places posing a threat to industry in the state, many of these are incurring heavy financial loss.

The Financial World team while visiting few prominent industrial sectors in the state observed that large numbers of units in the state are using hardly 50% of their production capacity. Nearly 30000 workers employed in handloom industry Panipat producing nearly 15 lakh meter cloth daily are facing danger to their employment. The owners of most of the textile units told that it is better to close down their units rather working on diesel generating sets increasing production cost. The Financial World found that nearly 50 plants manufacturing Polar blankets, over 100 plants manufacturing Mink blankets, nearly 125 plants manufacturing 3D bed sheets and curtain cloth and more than 300 dyeing units involved in dyeing  nearly 12 lakh kg thread daily were found closed.

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More than 40% production was found dropped in industrial units at Sonipat, Rai and Kundli industrial areas due to unscheduled power cuts in the state in-spite of the fact government has declared daily eight hours power cut.  Rakesh Devgun President of Rai Industrial Manufacturing Association  said, production remains suspended for a long time due to  sudden power cuts damaging not only machines but also  produced material.  Similarly, the entrepreneurs of plywood industry Yamunanagar and metal industry Jagadhari expressed unhappiness over unscheduled power cuts.  State General Secretary of Haryana Chamber of Commerce & Industry Raj Chawla said that that night shift  in more than 80% manufacturing units have been discontinued due to power cuts as such units are able to produce hardly 60% of their production capacity facing severe economic crisis due to non-supply of goods against orders.

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A survey of Bahadurgarh industry having nearly 8000 manufacturing units  producing shoes and rubber products revealed nearly 70% drop in production due to power cuts and night shifts in most of the units causing heavy revenue loss has been discontinued. Senior President of Bahadurgarh Chamber of Commerce & Industry Narender Chhikara said that industry in the town suffering loss worth Rs 150 crore daily due to unable to produce raw material, which many time spoils due to power supply cut all of sudden. Nearly 80% units at Rohtak manufacturing nut-bolts supplying to large number of original equipment manufacturers in domestic as well as export markets are suffering a lot.  S.K.Khatod president of industry association said, the production has reduced between 50-60% and situation is likelyto worsen further in case state government fails to take necessary steps at an early.

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Hisar steel industry, too, facing severe crisis facing 40% drop in production  in nearly 150 stainless steel units and nearly 200 units manufacturing steel products in the town. According to information, shutters of large number of small manufacturing units producing spare parts are seen closed down. More than 25% industrial units at Gurugram known for manufacturing automobile, auto parts and readymade garments in the area are facing power shortage. More than 25000 micro, small and medium industries at Faridabad are facing loss worth Rs 1 crore daily due to drop in production more than 40%. Industry owners told that electricity cost Rs 32 per unit in case they use diesel generating sets instead of Rs 9 each unit charged by the government.

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