Export unit suffering heavy losses in MIHAN-SEZ for want of power supply

Export unit suffering heavy losses in MIHAN-SEZ for want of power supply

THE production plans of all units in the Multimodal International Hub and Airport at Nagpur (MIHAN). Special Economic Zone (SEZ) have come to a standstill due to snapping of power supply since fortnight which was promised by the Maharashtra Airport Development Company Limited (MADQ. "

The power crisis has financially affected Dayalu's Diet Food International, a 100 per cent export-oriented unit dealing in export of spices and pulses to 33 countries." .said Manohar Bhojwani, Director of the company and President of MIHAN Industrial Association while talking to The Hitavada on Sunday.

"Just to keep the unit running. I am suffering a loss of Rs 6.000 per day on diesel generator set." he said. Adding that he used to spend on an average Rs 22.000 on electricity bills per month. In order to keep the unit running for another month it would cost about Rs 1.8 lakh on DG set. There is a huge gap in expenses between electricity and diesel to run the unit. "The huge amount of loss (hat has fallen on my shoulders cannot be sustained for a long time." he added. The unit was set up with an initial investment of Rs 12 crore. The company was in its final stage of installing a fully automatic

REPQ

cryogenic grinding machine imported from United Kingdom (UK).

"At this juncture. I cannot afford to stop my dream project from getting grounded." he pointed out. After completion the unit will provide employment to more than 50 full-time persons with a projected turnover of Rs 1OO crore per annum. Earning valuable foreign exchange for the country in the process.

He highlighted that if the production docs not start within a month. his reputation and image as an exporter would be tarnished. "We have obligation to hanks, and orders to he fulfilled which will have to he cancelled if the electricity is not restored at promised rates," he lamented.

The final stage of machine installation has been affected due to power    supply    being snapped by Abhijeet Group.

At the time of investment the promoters were given an assurance of cheap power at Rs 2.97 per unit by MADC which happens to be the power distribution liecncee and developer of MIHANSEZ. Accordingly, the differences between MADC and Abhijeet Group should be kept aside and be resolved between themselves without affecting power consumers. The Chairman of MADC who also happens to be Chief Minister has a moral respon-sibiliiy to resolve the power crisis, he added.

Furthermore. MADC can buy power from the open access route which comes to Rs 3.5 per unit to Rs 4 per unit from NTPC. Citing an example, that the SEZ at Indore (MP) has successfully started its Pha.sc-III and offers cheap power at Rs 3.20 per unit, he added.

Me elaborated that as a last resort, if power crisis is not resolved soon, then he would approach the High Court and Ministry of Commerce to denotif his unit.

Furthermore. "Mahara.shtraisthe only Stale in the country imposing Value Added Tax in the SEZ. Another major problem in the country is the introduction of Minimum Alternative Tax (MAT) at 22.5 per cent which has threatened the very existence of SEZs in the country. On one band the Government was offering sops and on the other is Liking away the benefit by introducing more taxes on industries." he added.

Posted in: News 2014