Home / Business and Economy / India Factories Reel from Power Cuts and Diesel Limits
India Factories Reel from Power Cuts and Diesel Limits
27 Jun
Summary
- Frequent power cuts halt factory production multiple times daily.
- Diesel purchase limits complicate generator use for businesses.
- MSMEs face rising costs from power and fuel restrictions.
Indian small and medium enterprises (MSMEs) are experiencing significant operational disruptions due to a combination of soaring temperatures, peak electricity demand, and tighter restrictions on diesel purchases. Frequent power cuts, caused by grid tripping and load shedding, are forcing factories to halt production several times each day.
These power interruptions, sometimes lasting only 15-20 minutes, necessitate complete factory restarts, resulting in economic losses. The situation is exacerbated by recent restrictions limiting industrial diesel purchases from retail outlets to 200 liters per customer.
This dual challenge of unstable power supply and restricted access to backup fuel is increasing production costs for the 87 million MSMEs, which are vital to India's GDP and exports. Industry bodies are urging the government to relax these diesel purchase regulations, particularly for businesses reliant on generators during power outages.
