IT companies in Andhra Pradesh, particularly in Hyderabad, are experiencing a shock because of ongoing general strike in demand for statehood to Telangana.

With power supply situation looking precarious, the Government is resorting to power cuts for an hour or two daily forcing IT companies to use diesel generators as a back-up. Several companies are placing orders for generators to support more systems and ACs as the existing back-up facilities are not enough. Following the power disruptions, Nasscom, the IT industry body, has given a representation to Andhra Pradesh Government seeking continuous power supply for continuity of services.

“The diesel generators are used on a daily basis.

The amount spent on additional diesel is small but the problem is nagging,“ said Infotech Enterprises chairman and managing director BVR Mohan Reddy. According to him, the pressure on the margin is small but will not help the companies in the long run. The company is now placing order for ad ditional generators. The company as of March 31, 2011, spent about Rs 11.4 crore on power and fuel.

According to Ramesh Loganathan, centre head of Progress Software, the company is forced to look at options for enhancing the captive generation in view of the power cuts. The grid power comes for Rs 4 per unit and Rs 9 to Rs 11 per unit for power from diesel generators.

“It is a worrisome situation in the state. These kind of problems will not help the brand Hyderabad,“ said Suresh Kumar, president of ITsAP , industry body in the state voicing concerns of the IT industry. As of September 23, the power shortfall was 27.11 million units as the demand was 260.71 million units and only 233.6 million units were supplied.

Workers at Singareni Colleries Company have been on strike since September 13. State-owned power utility APGENCO has an installed thermal capacity of 5000 MW but it is generating only around 3,100 MW power due to shortage of coal.