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Power Shortage In NCR Eating Into Industry Profit, Rs 1,400cr Spent Annually On Diesel For PowerBy ugesh sarkar, Section Business
A whopping Rs 1,400 crore is spent annually by about 40,000 industrial units located in and around the National Capital Region (NCR) on diesel for running generator sets to meet their production targets. This is because of the paucity of power in the area which averages to about eight to 10 hours daily.
This was discovered by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) during a brief study conducted in the region recently. Releasing the report of the study today, ASSOCHAM secretary general D. S. Rawat said that in the process these industries consume as much as 35 crore litres of the precious fuel which otherwise could have been used for running road transport. Also, running the generator sets for long hours cause environmental and noise pollution. The report said that industrial units had no other option, as because of the erratic power situation in the area, without the use of generators they would have been unable to meet their targets.
According to the study, the excess consumption of diesel for running these gen sets has made the industry in the region incompatible as their margins have shown signs of shrinkage because of the high cost of diesel.
On an average each small, medium and large industrial unit spends as much as Rs 18,000, Rs 70,000 and Rs 1.20 lakh per month respectively. The Business Process Outsourcing offices (BPOs) located in the region, however, spend the maximum amount, about Rs 1.35 lakh on diesel because of their 24 by 7 working schedule. Source: Tribune News Service 19/Jun/2008
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