Load-shedding effects: Industries slash production

BIRGUNJ, JAN 29 -  

The 14-hour daily load-shedding has forced industries based in the Bara-Parsa Industrial Corridor, the country’s largest industrial base, to slash their production by 60 percent.

According to industrialists, power shortage coupled with diesel crisis has hit them hard. They say they are receiving much less amount of diesel than their normal requirement. “Industries that require around 7000 litres diesel daily are getting only 3000 litres,” said an industrialist. 

Rushi Unnithan, executive director of Jagdamba Steels, said his factory has slashed operation to 10 hours a day from the regular 20 hours. “Our factory used to produce 1,280 tonnes of iron rod daily, which now has come down to only 500 tonnes,” said Unnithan.

The power shortage and fuel crisis, according to Ashok Temani, president of the Birgunj Chambers of Commerce and Industry (BCCI), has already forced five iron factories to shut down their operation. “There is no environment to run industries,” said Temani. “The government is only busy collecting revenue.”

Due to the energy crisis, nine cement factories and seven iron factories in the corridor are struggling to run under their normal production schedule. The cement factories having daily production capacity of 15,000 sacks have been producing just 3,000-5,000 sacks for the last few weeks. Mahendra Agrawal, sales manager of Jagdamba Cement, said his company is struggling to supply cement as per the market demand. 

With domestic producers forced to cut down their production, domestic steel and cement manufacturers fear that Indian products might acquire bigger market share in the local market. “With domestic manufacturers having larger market share unable to cater to the demand, Indian brands might get hold of the local market,” said Bishnu Agrawal, promoter of Rajesh Metal Craft.

Agrawal’s fear is logical as domestic cement and steel manufacturers have been forced to reduce production by 60 percent. 

BCCI has urged the government to import additional 12 MW power from India by repairing Birgunj-Raxaul transmission line. “The repairing of the transmission line will cost only Rs 400,000,” said Temani. Industrialists have also demanded to bring into operation the 14-MW diesel plant in Hetauda. 

Arun Mahato, head of Birgunj Power Distribution Centre of Nepal Electricity Authority, said NEA has held talks with Bihar Electricity Board to restart the Birgunj-Raxaul transmission line. According to Mahato, import of the 12-MW electricity from Raxaul could bring down power shortage in Birgunj by three hours a day.

Source: Kantipur