AP SMEs could shut down production | SupportBiz

In Brief

AP SMEs could shut down production

 
FAPSIA has given a call for a 15-day shutdown of industrial units across the state.

Small and medium enterprises (SMEs) in Andhra Pradesh have threatened to shut down production, in the face of the announcement of a 12-day power holiday every month. The Federation of Andhra Pradesh Small Industries Associations (FAPSIA) has requested the permission of the labour commissioner to close down units, reports SME Times.

Members of FAPSIA have reportedly served lock-out notices to the authorities, mentioning that it would not be feasible any longer for them to continue production.

Ravibhushan Rao, joint labour commissioner, has assured the federation of bringing the issue to the notice of the government.

Considering the rising power shortage in the country, electricity distribution companies had announced 12-day power holidays for the industrial sector from March 1. This decision was taken in view of the increasing demand for power from the domestic sector, owing to the approach of summer, to ensure that the daily seven-hour supply to the agriculture sector is maintained.

The lock-out is expected to cause problems between the industrial units and the employees. The management of some enterprises have already hinted at a 50 percent salary cut.

FAPSIA gave a call for a 15-day shutdown of industrial units across the state, as a mark of protest against the proposed power cuts. The organization leaders maintain that the power cuts, if implemented, would be a big blow to industrial production in the state, considering that the SMEs are already dealing with several challenges. Just two months ago, the state government lifted the eight-day power holidays on the industrial sector.