APTMA concerned over power supply

KARACHI: All Pakistan Textile Mills Association (APTMA) has expressed concern over the delay in resumption of load shedding exemption for the textile industry, incurring 21 percent production loss a day.

The APTMA spokesman deplored Pakistan Electric Power Company (PEPCO) was making mockery of the assurance given by the government on the floor of the house during the budget speech.

PEPCO had withdrawn the exemption on load shedding for textile industry on May 14 for a week. The management of APTMA had held a meeting with the PEPCO officials on May 16, 2009. PEPCO assured APTMA that the electricity load shedding for the textile industry and member mills of APTMA would be exempted on May 20, 2009.

According to the APTMA spokesman, the textile industry was experiencing announced and unannounced load shedding for five to eight hours a day on independent and grouped feeders. The PEPCO-reliant textile units are bound to shut down their operations with no respite in sight, he added.

The reports relating to an imminent increase in power tariff ahead have invited worries of the industry in general. The APTMA spokesman expressed concerns over government’s alleged agreement with the International Monetary Fund (IMF) to increase power tariff by 10 percent in two phases. He said electricity was over 30 percent of the conversion cost in textile industry and it has already crossed 40 percent of the conversion cost for organised weaving sector.

The APTMA spokesman said 30 percent of the textile industry was closed down due to high cost of doing business, including the cost of electricity.

The line losses of all B-3 and B-4 connections, meant for the industry, were registering minimum line losses against retail supply to other sectors. The industry was clearing all its dues timely but the government was still burdening it by shifting the defaults from domestic users to the industry on one hand and by increasing tariff irrationally on the other.

A full-time availability of electricity for textile sector, competitive rates in line with regional competitors and freezing of power tariff for textile value chain for two years besides introducing special textile industry tariff in the budget 2009-10 to make it viable ahead, APTMA demanded. link...