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Power crisis, a stumbling block for TS development
Power crisis, a stumbling block for TS development, Persistent energy crisis has turned into a major stumbling block for the Telangana State government to formulate a “new investor friendly Industrial policy- 2014-15.”
- Telangana govt seeks 1,000 MW exclusively for industry and IT sector under new policy
- Energy dept says no to additional power to industry until generation capacity increases and it improves network to buy power from other States
- Warns power sops to industry will aggravate power crisis in present situation
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Hyderabad: Persistent energy crisis has turned into a major stumbling block for the Telangana State government to formulate a “new investor friendly Industrial policy- 2014-15.”
Even as the Chief Minister K Chandrasekhar Rao was claiming that the new policy would be an investor-friendly and would adopt a single window clearance system for domestic and international investment proposals, the increased shortage of power has left the State in a great dilemma on how to cope up with the power requirements for the new industries that would come up in the State.
The top officials of the Telangana Transco told The Hans India that the Energy department had informed the Industries department about the hurdles in meeting the power requirements under the new policy which was seeking over 1,000 MW of additional power for the new projects. Government recently asked the Energy department to submit a detailed report on power situation to prepare the new industrial policy.
Tentatively, the policy mentioned that it required 1,000 MW of power exclusively for the new projects as the government proposes to provide subsidised power to manufacturing sector in order to get huge investments in the areas.
The Energy officials said the Industries department was informed that the major challenge before them was that they do not have enough installed capacity to generate required power, and even if they want to go in for long-term purchase agreement, power was not available anywhere. Moreover, it also does not have the grid to carry the power even if it was available.
The total installed capacity, both thermal and hydel, was only 4,000 MW as against the demand of 5,000 MW.
At present, government was supplying power 24x7 to IT industry and one day power holiday was enforced on other industries. To meet the industrial and agricultural energy requirements, power cuts have been imposed including in Hyderabad since four months.
The Energy officials also said the growth in new power connections witnessed steep drop in industrial sector this year. It registered minus 20 per cent growth as against 12 per cent in the previous year. It was a clear indication that many investors put on hold their plans to set up new companies due to power crisis.
