Weekly 8-Hour Power Cuts Hit Industries In Gujarat Amid Festival Season

Gujarat's industrial sector is grappling with new uncertainty as the state government imposes weekly eight-hour power cuts just before the Diwali festival, sparking worries about production losses and workers' incomes. These restrictions come as industries grapple with the aftermath of earlier disruptions caused by the Strait of Hormuz crisis.

Power rationing commenced after government notices were issued last week, as electricity demand rose across the state. On October 16, Gujarat experienced its peak power demand of 29,822 megawatts, fueled by Navratri celebrations, heightened industrial activity, and Diwali preparations.

Ashok Jirawala, President of the Southern Gujarat Chamber of Commerce and Industry, expressed his apprehension, stating, "Diwali is just around the corner, but for the first time in the last 20-25 years, the government has imposed a power cut." The state government has taken steps to tackle the electricity shortage, such as procuring extra coal supplies and power allocations from the central grid.

Authorities are also considering restarting non-operational power plants to boost availability. While they have endorsed the government's actions, industry representatives have voiced concerns over the timing of the power cuts.

Factory owners fear that the scheduled electricity cuts could disrupt manufacturing operations. Diwali is approaching rapidly, but for the first time in 20-25 years, the government has introduced power cuts. Ashok Jirawala emphasized that businesses need to fulfill orders and dispatch goods before Diwali. The proposed power cuts, from 4 PM to 11 PM, are deemed inappropriate by industries, as they could impact the entire textile supply chain. Jirawala has written to the government to communicate their concerns.

Traditionally a power-surplus state, Gujarat is witnessing restrictions of this scale for the first time in nearly 15 years, according to industry representatives. Some large manufacturers with captive power plants have shifted to grid electricity due to higher coal and gas costs. Engineering units in the Rajkot district have designated Wednesday as their weekly power-cut day.

However, the Rajkot Engineering Association rejected the proposal, warning that daily cuts could cost workers around ₹20 lakh in wages. Rajkot district, home to over 2 lakh engineering units, has also begun adjusting shifts and production schedules. Manufacturers in Ahmedabad and Sanand have started modifying their production plans, with Sanand Industries Association president Amit Shah expressing the hope that the restrictions would be lifted soon.