Hyderabad:
The power crisis in Andhra Pradesh is now resulting in a face-off between the industry and the farm sector. With no power to factories for three days a week many in the sector are starting to question the policy of giving free power to farmers.
Staying without power for three days in a week is driving the industry in Andhra Pradesh up the wall. Especially when they see the government providing seven hours of free power to farmers.
With the state citing lack of funds as the reason for not purchasing power this summer, industrialists say it is time farmers pay at least something for the power they use.
Narender Surana, Chairman, FICCI, AP Council : "A person who wants one pumpset goes for two and unnecessary use of power would be there, depriving someone else in the state. It is out of concern that we are saying that anyone using a service as important as power should pay a low cost. It could be 25-30 per cent whatever the government and farmers feel appropriate."
March is the most critical month for any industry given 30 per cent of orders are executed in this one month. Instead, productivity has dropped to 40 per cent forcing many units to do away with hiring temporary labour.
The government argues the industry is lacking perspective in faulting free power for the crisis.
D A Somayujulu, Advisor on Economic Affairs: "If we don't give free power to them, there is no way they can do agriculture. Even if you charge them, you have to charge not more than 40 to 50 paise per unit. That will give me just 750 crore rupees, which is such a paltry sum going by the total money we are talking now."
The government spent 6500 crore rupees purchasing power last year. This year, very little money in the coffers meant the government chose fiscal prudence over reckless borrowing.