A number of businesses in the leather belt of Tamil Nadu are facing the challenge of rise in production cost, some by as high as 25 percent. The power crunch is rendering it difficult for these businesses to keep up their production commitments, and is leading to their losing face in the global market.
M Rafeeque Ahmed, Chairman of the Council for Leather Exports, states: "Here the power crisis is so high that it's affecting our costs and our delivery schedules very badly. We're very worried about how we'll meet our international commitments.”
Leather is a major industry in the state of Tamil Nadu, with nearly 90 percent of the total output being exported.
The power situation in Tamil Nadu has worsened over the past couple of years, with the state currently facing a deficit of nearly 4,000 MW. The deficit was 2,000 MW in the last year.
Tamil Nadu Electricity Board (TNEB) officials are confident that the state will soon emerge out of the power crisis, as there are a number of capacity addition projects underway. Moreover, the Koodankulam nuclear power plant will soon be commissioned soon.
Source: IBN Live