‘Power crisis to ease in 2014’

Hyderabad: Given that the state’s small and medium industries (SMEs) are bleeding due to the ongoing power crisis, there is hope for revival of some of them as the power situation is likely to improve by next year, Devendra Surana, president of the Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci) told this correspondent, on the sidelines of Engineering Expo here on Friday.

“Manufacturing output has dropped 10 per cent in the state and engineering exports have been hit. However, with the power crisis likely to improve next year, there is hope for revival of some SMEs,” he said.The drop in the industrial growth has dented AP’s economy.

The SMEs have suffered a production loss of 40 per cent (i.e. Rs 15,000 crore) during the fiscal 2012-13. The power crisis has also led to the closure of two lakh small and medium industrial units. Further, about 6,000 SMEs in the state have been declared as non-performing assets. On the demand for manufacturing, the Fapcci president said that “because the services sector is doing well, there is a huge demand for manufacturing in the state of Andhra Pradesh.”

Explaining of how the Expo will help small and medium enterprises in the state, Surana said it is an opportunity for small and medium enterprises (in AP) to improve efficiency and production and reduce costs. Meanwhile, Ganesh Parthasarathy, CEO, Tussor Machine Tools India Pvt Ltd said, the company’s business from Hyderabad has been hit due to acute power shortage. The Engineering Expo, has over 150 SMEs from across India showcasing their products, expects to see 15,000 business visitors in the four-day event that will go on till June 3.