After Congress fails on power promise, Ballari industries suffer

To tide over the power crisis, many manufacturing units are forced to depend on generators shelling out about Rs.2,000 a day. Many unit managements are now worrying about increasing operational costs, paying interests on loans and declining production.

Hyderabad: After suffering losses during Dasara season, many garment manufacturing units, especially jeans making units, in Ballari of Karnataka are worried over losses during the Diwali and Sankranthi seasons as well due to insufficient power supply resulting in low production.

To tide over the power crisis, many manufacturing units are forced to depend on generators shelling out about Rs.2,000 a day. Many unit managements are now worrying about increasing operational costs, paying interests on loans and declining production.

---

“We get power for about three to four hours and that too is unpredictable. Besides damaging raw materials, power cuts increase operational costs and reduce production,” said R Guruswamy, a garment manufacturing unit owner in Ballari.

There are about 350 to 500 manufacturing units in Ballari, a majority of these units manufacturing jeans and other garments. They get orders from neighbouring States and supply stocks to buyers before the festive season.

To tide over the ongoing power crisis, a few manufacturing units, which can afford, are depending on generators. However, this does not meet their power requirements.

Depending on the production capacity, units use about 15 to 20 litres of diesel a day. This works out to nearly Rs.2,000 a day and nearly Rs.60,000 a month. This apart, generators can be used for operating the sewing machines and other equipment but not for ironing and washing as more power would be required to operating such equipment.

Manufacturing units get raw materials from Ahmedabad and manufacture garments as per buyers’ requirements. Generally, raw material suppliers give some time for clearing the bills and after the stipulated time elapses, interest is levied or supplies would be discontinued.

In the hope of making good business, manufacturing units procured huge quantity of raw materials but due to insufficient power supply, production was getting affected. All these factors are leaving the managements anxious.

“This Dasara season was a flop and many suffered losses. If the power crisis continues for another two months, there will be more losses for Diwali and Sankranthi as well due to low production,” Guruswamy said.

Rahul Gandhi breaks promise on jeans textile park

Garment manufacturing units are unhappy with the Congress party and are demanding Rahul Gandhi to fulfill his promise of sanctioning a jeans textile park in Ballari, besides a special package of Rs.5000 crore for the industry in the district.
Despite five months passing by after forming the government, the Congress government has not made any announcement in this regard.

Rahul Gandhi had said the decision on allocating the funds would be taken at the first cabinet meeting of the Congress government.

Slamming the Congress for its failure in fulfilling the promises made to people, Industries Minister and BRS working president KT Rama Rao tweeted: “Rahul Gandhi had promised to make Ballari the jeans capital of India. Now, jeans industry of Ballari is in serious distress due to irregular and prolonged power cuts by the Congress government…”

Free supply to households affecting industrial supply

Before the elections, the Congress party had promised to supply 200 units of free power to households and this was affecting supply to industries, particularly small scale units.

The consumption had increased substantially in the domestic sector as well, and to meet the demand, the Electricity department was imposing power cuts to the industrial sector. Amidst this power crisis, many small scale units were suffering heavy losses, said Narendra Kumar, a weaver from Ballari.