Industry hit hard by three days of power outages
KARACHI: The massive power failure that struck Karachi on Saturday night had a disastrous effect on industrial activity, robbing the government of billions of rupees in revenue.
The Chairman of the Korangi Association of Trade and Industry (KATI), Mian Zahid Hussain, claimed that 90 per cent small and medium enterprise (SMEs) units out of the total 4,000 units had suffered massive production losses because of non-availability of power since Saturday night. The situation aggravated on Sunday after suspension of water supply to many units.
Till 5pm on Monday, power supply to the entire sector had not been restored, he said. Big textile export-oriented units have large standby generators or captive power facility that might have averted huge production losses.
However, they had to bear a cost of Rs17 per unit on running generators. Captive power units cost Rs5 per unit while the Karachi Electric Supply Company charges Rs9 per unit.
Mr Hussain said standby generators could not be run for more than four hours because of financial constraints.
He claimed SME units had suffered losses ranging between Rs8 billion and Rs9 billion over the past three days and the provincial and federal governments had lost Rs900 million in revenue.
The Chairman of the F.B. Area Association of Trade and Industry (FBATI), Idris Gigi, said production in the area was normal on Sunday and Monday after restoration of power supply.
However, dyeing and processing industries suffered huge production losses because of suspension of water supply, he said. The Chairman of the North Karachi Association of Trade and Industry (NKATI), Younus Khamisani, said: There was zero production on Sunday and only 25 per cent on Monday because of the prolonged power failure.
In many sectors of the area, there has been no electricity for more than 48 hours and it is impossible to carry out normal production activities.
He said 75-80 per cent SME units out of 2,500 in the area did not have standby generators and no unit had captive power facility.
According to the Chairman of the Site Association of Industry, M.A. Jabbar, only 25 per cent production was recorded on Monday while there was no production on Sunday.
He said 90 per cent units had lost connection with foreign and local buyers on internet after the fibre optic system collapsed and landline connections of the Pakistan Telecommunication Company were suspended.
Around 300 textile processing units suffered production losses because of suspension of bulk water supply. He said that in 30 per cent of industrial units, raw material and other items lying outside the units was destroyed in heavy rains. Site has 10,000 units of which five per cent have captive power facility and 20-30 per cent have generators.
The former chairman of the All Pakistan Marble Mining, Processing and Exporters Association, Sanaullah Khan, said that 300 units in the marble industry had been without power for the past 70 hours, which had brought production activities to a standstill.
He said the KESC had made no serious efforts for restoring supply to the marble industry.
The patron-in-chief of the Port Qasim Association of Trade and Industry (PQATI), Naeem Khanani, said only 30-35 per cent production was registered in 40 of 98 industrial units in the area on Monday. He said that in addition to power failure, workers could not reach their factories because of transport problems caused by bad road conditions and power riots. He said 58 units had their own captive power generation system.
DAWN.COM | Business | Industry hit hard by three days of power outages
KARACHI: The massive power failure that struck Karachi on Saturday night had a disastrous effect on industrial activity, robbing the government of billions of rupees in revenue.
The Chairman of the Korangi Association of Trade and Industry (KATI), Mian Zahid Hussain, claimed that 90 per cent small and medium enterprise (SMEs) units out of the total 4,000 units had suffered massive production losses because of non-availability of power since Saturday night. The situation aggravated on Sunday after suspension of water supply to many units.
Till 5pm on Monday, power supply to the entire sector had not been restored, he said. Big textile export-oriented units have large standby generators or captive power facility that might have averted huge production losses.
However, they had to bear a cost of Rs17 per unit on running generators. Captive power units cost Rs5 per unit while the Karachi Electric Supply Company charges Rs9 per unit.
Mr Hussain said standby generators could not be run for more than four hours because of financial constraints.
He claimed SME units had suffered losses ranging between Rs8 billion and Rs9 billion over the past three days and the provincial and federal governments had lost Rs900 million in revenue.
The Chairman of the F.B. Area Association of Trade and Industry (FBATI), Idris Gigi, said production in the area was normal on Sunday and Monday after restoration of power supply.
However, dyeing and processing industries suffered huge production losses because of suspension of water supply, he said. The Chairman of the North Karachi Association of Trade and Industry (NKATI), Younus Khamisani, said: There was zero production on Sunday and only 25 per cent on Monday because of the prolonged power failure.
In many sectors of the area, there has been no electricity for more than 48 hours and it is impossible to carry out normal production activities.
He said 75-80 per cent SME units out of 2,500 in the area did not have standby generators and no unit had captive power facility.
According to the Chairman of the Site Association of Industry, M.A. Jabbar, only 25 per cent production was recorded on Monday while there was no production on Sunday.
He said 90 per cent units had lost connection with foreign and local buyers on internet after the fibre optic system collapsed and landline connections of the Pakistan Telecommunication Company were suspended.
Around 300 textile processing units suffered production losses because of suspension of bulk water supply. He said that in 30 per cent of industrial units, raw material and other items lying outside the units was destroyed in heavy rains. Site has 10,000 units of which five per cent have captive power facility and 20-30 per cent have generators.
The former chairman of the All Pakistan Marble Mining, Processing and Exporters Association, Sanaullah Khan, said that 300 units in the marble industry had been without power for the past 70 hours, which had brought production activities to a standstill.
He said the KESC had made no serious efforts for restoring supply to the marble industry.
The patron-in-chief of the Port Qasim Association of Trade and Industry (PQATI), Naeem Khanani, said only 30-35 per cent production was registered in 40 of 98 industrial units in the area on Monday. He said that in addition to power failure, workers could not reach their factories because of transport problems caused by bad road conditions and power riots. He said 58 units had their own captive power generation system.
DAWN.COM | Business | Industry hit hard by three days of power outages
