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• Industry bodies in Andhra Pradesh have requested the state government to take measures to improve supply of power in the state like buying more gas to generate power and reduce Value Added Tax to 4 per cent on diesel purchases for power generation. Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) has suggested that the state government should buy RLNG (regasified liquefied natural gas)to get 500 MW power generated by gas-based private power producers. The federation has also suggested that out of this, 100 MW power should be reserved for small units at regular tariff and the balance 400 MW could be supplied to large units and continuous process industries at a rate that would cover the cost of power.

• The suggestion was made as the gas supplies from the Reliance D-6 have dwindled affecting power supply. Devendra Surana, senior vice president of FAPCCI said that there is 40 to 52 per cent power shortage in the State leading to 40 per cent production loss. According to him, total power requirement for March, April and May will be 828 million units while the supply is likely to remain at 699 million units resulting in a demand-supply gap of 129 million units. The industry has also demanded reduction in Value Added Tax to 4 per cent on diesel purchases for power generation. State Major Industries Minister Geetha Reddy yesterday convened a meeting of senior government officials of the power and industries department and representatives of industry bodies. The industry bodies stated that it would be difficult to conduct regular operations due to two-three day power holidays a week, and four-hour cuts during peak hours. Though bigger industries also suffer due to power shortage, the micro, small and medium enterprises are the worst hit, Surana said.

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