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Many fear holidays will push industries into losses
Cement and chemical industries will be worst hit
HYDERABAD: With the intensifying power crisis, authorities have reportedly sent notices to a number of industrial areas in and around the twin cities informing them of the rise in the number of power holidays each week from one to two. The fresh decision has caused enough agitation among the industrial circles spurring them to come together for an organised reaction.
A meeting was organised among the representatives of the various Industrial Development Authorities on Wednesday to discuss the issue and decide on the future course of action. IDA Mallapur, IDA Nacharam, IDA Cherlapally and IDA Uppal are learnt to have participated in the meeting. A representation will be made to the Chief Minister on Thursday and further action will be decided after his response, sources informed.
The power holidays are feared to result in huge setbacks for the industries. Making up for the lost production would be next to impossible for many.Bleak scenario
“With production setbacks, orders will be diverted to other States resulting in long term losses. This will also prove to be loss to the exchequer. Small scale industries will face the worst as their profit margins would reduce. Industries will incur huge labour costs as workers have to be kept idle most of the time. Loans will have to be rescheduled and this will affect the bankers’ confidence in us,” J. Nageshwara Rao, the President of Nacharam IDA said explaining the cascade effect of the power holidays.‘Prices will rise’
Processing industries with 24-hour shifts will face huge losses as they will not be able to cope with rise in labour costs. Cement and chemical industries would be the worst hit and there could be further increase in the cement prices which will affect the construction industry very badly.
“I’m personally trying to get round the losses by increasing the number of working hours on other days. It is possible for us because we function in a general shift. For those working round-the-clock, it will be tough. There were quite a few of them protesting in today’s meeting,” A. Bhaskar Reddy, Director of Infab Industries Private Ltd., said.
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