Corporate India loses $8 Billion in power cut
Facebook Twitter google+ RSS Feed

Corporate India loses $8 Billion in power cut

By SiliconIndia   |   Wednesday, 27 May 2009, 12:34 Hrs   |    9 Comments
Printer Print Email Email
Corporate India loses $8 Billion in power cut
Bangalore: The India Inc has suffered a loss of $8.64 billion (43, 205 crore) in the power downturn in the year 2008-2009, says a study by the Manufacturers' Association for Information Technology (MAIT) and Emerson Network Power (India). The study was an in-depth analysis of the impact of downtime in corporate India due to high occurrence of power outages, loss incurred are scheduled and non scheduled expenses, which is just double the loss incurred in the year 2003, when it was only 22, 000 crore.

The loss incurred is about one percent of India's total GDP. The key reason described in the report for the loss is because of the infrastructure stress on the power utilities. There are a large number of companies which rely on the IT infrastructure for automation, productivity and business management. The employee productivity and customer management were severely impacted by such downtime. Manufacturing sector has been described as the worst affected in this downtime.

The study, which in the third round was conducted by the consulting firm M/S Feedback Business Consulting Services, covered around eight hundred cities located in seven important industrial cities in India. Sixty-two percent of the companies surveyed were found to have a complete dependability on the IT and Automation sector. Fourteen major industry verticals including manufacturing, electronics, telecom, IT services, IT enabled services, banking & finance, pharmaceutical, biotechnology, SMEs, retail, hotels, real estate, infrastructure and hospitals were surveyed and the information was obtained from the senior executives.

"Contingency planning is part of the India Inc's mindset, based on traditional experiences with infrastructure limitations. This trend will continue in the light of global power failures encountered in Western countries. Firms will need to pay more attention to maximizing uptime if they are to remain competitive in a globally networked economy," said Vinnie Mehta, Executive Director, MAIT

The power disruption frequency was highest in Delhi, followed by Pune and Bangalore. Among the surveyed, 78 percent feel that the condition will improve in one year, but Delhi was at the top with the least confidence in showing up. The highest confidence level was polled for Chennai. Telecom sector was found to have the fastest restoration ability, while it was found slowest in pharma/biotech, hotels/hospitals and manufacturing.

The downtime loss incurred across all the verticals was observed at an average of 54,434 per hour, which is highest in telecom and real estate/infrastructure companies, and lowest in the SMEs. The major impact of the downtime is on the employee productivity and customer management. The average speed of restoration was found about 71 minutes. Bangalore was adjudged with high frequency and longer outages. Mumbai continues to be most depended on grid for power.

Write your comment now
Submit Reset
Reader's comments(9)
1: This is a great drawback in our Nation that after intialisation of IT Sector and other Industry. Why they can not think first that how they full-fill the demand of power at Pick Period. I belongs to Power Sector in ESSAR. Today there is Some major private sector involve in Power Bussiness like Reliance, ESSAR, Tata, Jindal & other Induatries. But no body still thinking about Future because Coal mines have only 20 years of Coal stock. Today we are engage to start Mega power plant. After 20 to 25 year what can i do? Then why not country start to Nuclear power plant. Nuclear power plant is the best obtion to full fill our Industrial power requirement. Thermal power is best for Domestic power. Because large quantity of power is consumend our industry. After 25 yrs. Our Nation will come in Dark. So Save Energy............
Posted by:VINOD TIWARI - 29 May, 2009
2:
Friend, As per me it is not good option but it is the only option for us to go for Nuclear power. Because the pollution by nuclear power will be more dangerous. But in the mean while on behalf of our nation if we think about power saving and utilising those in proper ways we can try to extend the period against the dependability of Nuclear Power. As known we Indians are very lazy.I am under to overcome the same. We are the country with our own hertitage and development showing in front of other nations are prestigeous on the hand we all are losing our back bone of the country. So better is to conserve the energy. First We all can try to save the energies for our future generation.
Devadayalan Replied to: VINOD TIWARI - 02 Jun, 2009
3:
Access Right,useful powerful nothing meet generation anything key observation complex retain town launch debt land railway warm hand say attend hotel better natural connection if partner bear united green withdraw simple contribute grey generally motor individual though important bird open when provide science parent seat yourself enough fact select soil chance entitle sheet legislation far housing expert food regard debt notice application hope middle at lovely opportunity dinner many enable someone character sing cross lack academic pocket try impossible discuss software realize museum slowly profit turn short
daily jobs news Replied to: VINOD - 10 Dec, 2010
4: kindly let me know that have they included tne extra cost incurred on power produced (CAPTIVE POWER)by industries. if not than loss can be doule.
Posted by:dr alok sharma - 28 May, 2009
5: The goverment needs to focus its investment uin this segment seriously over the next 5 years to ensure the economic growth and better facilities to its business as well as people and then then we expect India to be a strong Economic player of tehtimes to come.
Posted by:Mohammed Reza - 28 May, 2009
6: This power shortage kind of problems can be minimized only by proper allocation of resourses . Regarding power as such India is still struggling to manage it properly .when a system implemented i should be implemented in such a way it serves its core purpose, this lags a lot in India
Posted by:satteesh - 28 May, 2009
7:
Access Right,useful powerful nothing meet generation anything key observation complex retain town launch debt land railway warm hand say attend hotel better natural connection if partner bear united green withdraw simple contribute grey generally motor individual though important bird open when provide science parent seat yourself enough fact select soil chance entitle sheet legislation far housing expert food regard debt notice application hope middle at lovely opportunity dinner many enable someone character sing cross lack academic pocket try impossible discuss software realize museum slowly profit turn short
daily jobs news Replied to: satteesh - 10 Dec, 2010
8: This Power down turn is good sign for the corporate world as well as for INDIA. due to this all companies find out their loop holes and try to fill up that, they need to think about their infrastructure as well as to their Power factors. what are the different mistakes did by them in last few years. Now before making & taking any dicision they have to think 100 times. People are try to learn new thinks n technologies.

think their is always GOOD time after BAD.
Posted by:Manish - 27 May, 2009
9: Power crisis is a huge problem for a country like India, unless the infrastructure is not improved, more losses will be incurred by this problem that is looming our country.
Posted by:Giri - 27 May, 2009
SPOTLIGHT