The export-oriented textile units of the country have been compelled to produce captive power generation, as country's power utilities providers have failed to cater to the industrial needs, industrialists told Business Recorder.
They said that consistent power failure in the country has caused reduced industrial activities specially those related to export causing serious delays. "We had only two ways out, either to put export process in jeopardy or to go for captive power generation," said an eminent textile exporters, "we chose the second," he said.
The export-oriented units are now relying on their own power generation. This could be gauged from their own power generation, as the country has imported worth $516.070 million power generation machinery during July-March, ahead of the ongoing power crisis in the country that has hit domestic trade activity, they elaborated.
They said that statistics show that import of power generation machinery was raised by 43 percent to $516.070 million during the first nine months (July-March) of the current fiscal year against $362.232 million during corresponding period of last fiscal, denoting an increase of $153.838 million during the first nine months.
They said that during the last few years exporters have faced serious power crisis in the industrial areas, which caused million of rupees losses to them.
"Now we are not relying on country's power utility providers including Karachi Electric Supply Corporation (KESC) or Water and Power Development Authority (Wapda) after undergoing the worst resulting from power failure or its improper supply," said some leading exporters.
They said that every year from December to July, peak season of garment and textile export, the garment exporters suffered million of rupees losses just because of the un-announced loadshedding.
More than 70 percent export-oriented textile units have installed their own power generation plants in the wake of un-announced and unremitting power failure in the country, said Zubair Motiwala a leading businessman and ex- director KESC.
He said that during the last few years in general and last year in particular performance of the local power supply companies have been very poor forcing the exporters to get their power plants installed.
He said self-power generation has become a primary need for all export-oriented units, pointing out that a specific space and amount is being allocated in every newly established industry to avoid power crisis during their operations. Self-Power generation is much costlier than the locally provided utilities but was the only way to save exporters from huge financial losses.
He informed that present 25 percent of exported-oriented textile industries are relying 100 percent on self-power production. "We are paying Rs 32 billion annually to gas companies of which Rs 4.5-5 billion is paid to those companies are used for power generation," he informed. Although power generation plants are very expensive but industrialists have spent millions of rupees on it to ensure timely production and shipment of export orders, he maintained.
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