Inverters, Generators demand to shot up by 25%:ASSOCHAM

The prices of inverter batteries, particularly for brands like Exide, Amaron have gone up by nearly Rs 1000-1200 in the past few months. The demand of dry and eco-friendly batteries have also gone up compared to normal batteries

20-25% hike in the demand of Inverters, their Batteries and Generators is expected in the current summer, particularly in NCR in the wake of anticipated scorching heat, arising out of aftereffects of global warming, according to Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The worst affected sectors that are likely to suffer the heat impact in the region include industrial and residential areas, hospitals, schools and shopping centres in which the power cuts could range between 10-12 hours a day in view of power demand supply mismatch, adds ASSOCHAM.

As a result, the demand for inverters, their batteries and generators will rise to the extent of 20-25% as NCR is unlikely to be supplied power supplies either from neighbouring region or else from far off power producing sources, says the ASSOCHAM analysis on `Demand Growth for Power in NCR’.

Figure compiled by ASSOCHAM on Inverters market reveal that in unorganised and organised sector, the inverter market is within the ratio of 60-40. Large players in inverters segment like Su-Kam, Microtech and Luminous will face tough competition from unorganised inverter industry in view of price differential of about Rs.2000-2500 per inverter in NCR, This region’s inverter market was estimated at Rs.20bn for which the main demand came from resident sector in the last year which will grow to approx. Rs.25bn this summer, said D S Rawat, Secretary General, ASSOCHAM.

Its analysis also says that in last summer, peak power demand in NCR was about 4600 MW as against its demand of over 5500 MW. Since, hardly any capacity addition has come in the region in the last couple of months, the peak demand might grow to over 5800 in the current summer. Naturally, the power shortage will be met through installation of inverters and generators in the region, the demand for which will rise by 20-25% as it the last 12 months, purchasing power of aam adami has gone up considerably.

The NCR had generator market size to the extent of less than Rs. 50bn during last summer, most of which was in the industrial, shopping centres and agriculture segment and partly in residential complexes. The market size for generator is expected to grow at least by over Rs.10bn in the region in view of their rising demand as generator prices have not gone that too high, said Rawat.

The domestic AC segment has been growing at 19-20% annually will rise to 25% growth in 2008. Split AC units currently comprise about 60% of the market base, at an estimated 25 lakh units. The Indian residential market for air conditioners is put at 12 lakh units per year. While the domestic AC market is estimated at Rs.32bn, Delhi has Rs.4bn share.

There is so much overload on power infrastructure especially in Noida, Greater Noida, Ghaziabad and Faridabad that over 1000 transformers have reportedly been gutted in last two years so far and production in industries has come down heavily due to lack of power supply to industrial units as well as have negative impact on the industrial growth of region.

The Gurgaon which has emerged fast compared to other NCR are also facing acute power shortage and its posh areas like DLF, Sushant Lok, South City, Palam Vihar etc. also affected badly.

However, in case of Delhi, South Delhi will be witness the maximum power cuts due to high density population and unplanned number of offices and shops, followed by East Delhi’s areas like Laxmi Nagar, Myaur Vihar.

The impact of the power cuts will be so high that even the government hospitals in the NCR are suffering badly in the last years and its also affected their day-to-day healthcare facilities and sometimes, the emergency cases are also neglected badly.

The power cut has its adverse impact also in education especially in government owned schools and colleges, where the attendance has come down heavily in the peak summer season.

The prices of inverter batteries, particularly for brands like Exide, Amaron have gone up by nearly Rs 1000-1200 in the past few months. The demand of dry and eco-friendly batteries have also gone up compared to normal batteries.

According to ASSOCHAM, the UP Power Corporation was generating approx. 2,700 MW of power every month, but the demand in the state was for 7,000 MW, thus leaving a gap of 4,300 MW. The UPPC is losing Rs 800 crore annually on power thefts.

According to ASSOCHAM, The industrial sectors like Sector 1, 2, 4, 9, 10, 62 of Noida and in Ghaziabad, Shahibabad, Raj Nagar, Meerut are the main places, the power shortage have witnessed very low in the last few years. In Faridabad, NIT, DLF industrial areas and in Gurgaon Udyog Vihar, Patudi Road, Maneshwar, Dharuhera, Pawal will also suffer.

In Delhi, industrial areas like Okhla, Naryana, Mayapuri, Shahdara will also require additional power for their business survival.