How power shortage hits India Inc.

Manufacturing is the worst hit, losing annually Rs 15,466 crore Rs 42,547 crore is the estimated amount lost by Indian firms annually due to power cuts

Most businesses such as IT, banks, telecom networks and manufacturing processes require 24x7 “uptime” or uninterrupted power supply. Over 40 per cent of over 800 Indian companies surveyed in a recent Emerson-MAIT study say they face power cuts at least once or twice a day and that the average restoration time is a staggering 71 minutes. Here’s how badly Indian industry is being affected.

Sector: Manufacturing
Loss: Rs 15,466 cr
Share in loss 36.3 %

Sector: SMEs
Loss: Rs 7,008 cr
Share in loss 16.5%

Sector: Hotels/Hospitals
Loss: Rs 5,514 cr
Share in loss 13%

Sector: Retail
Loss: Rs 5,244 cr
Share in loss 12.3%

Sector: Retail Estate/Infrastructure
Loss: Rs 4,043 cr
Share in loss 9.5%

Sector: Others
Loss: Rs 5,272 cr
Share in loss 12.4%

Impact of downtime: Cost per hour

30.2% of companies lose

32.9% lose Rs 10,000-25,000

17.2% lose Rs 25,000-50,000

13.2% lose Rs 50,000-1,00,000

6.5% lose Rs 1,00,000>

With power providers taking over an hour to restore supply, 37 per cent of those surveyed admitted to losses in between Rs 25,000 and Rs 1 lakh per hour

What is needed

• A contingency plan to minimise losses in industries
• Quality audit to identify improvement opportunities
• Growing focus on energy efficiency & energy saving

Survey based on interviews with managers across 800-plus small, medium and large organisations from 7 major cities in India