IT companies in Andhra Pradesh, particularly in Hyderabad, are experiencing a shock because of

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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 sufficient.

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 additional generators. As of March 31, 2011, it 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. “IT IS not clear if the power cuts will increase. We can manage on generator power for an hour or two but not more,“ Loganathan said.

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, supplying coal to NTPC and APGENCO, have been on strike since September 13.

State-owned power utility APGENCO has an installed thermal capacity of 5,000 MW but it is generating only around 3,100 MW power due to shortage of coal. Four thermal units with an installed capacity of 600 MW have been taken for annual overhaul due to shortage of coal. Andhra Pradesh is securing 335 MW From Madhya Pradesh and Rajasthan on a banking basis, 200 MW from Kerala, 200 MW from Haryana on a banking basis, 360 MW on weak-ahead exchange basis and 94 MW from intrastate totalling 1,189 MW (28 MU per day). Ministry of power has allocated 185 MW power to Andhra Pradesh.

The coal stock position at APGENCO's thermal stations was around 7.7 lakh tonnes before the strike and now is 2.61 lakh tonnes, just sufficient for five days. Similarly, the coal position of NTPC Ramagundam and Simhadri is sufficient for one or two days.

An additional expenditure of around Rs100 crore is being incurred by APGENCO towards additional coal supplies. Meanwhile, Emmar in a statement said its Gachibowli office was attacked and computers and windows smashed. “Our personnel was hurt. It is unfortunate that the law enforcing machinery of the state broke down and they were reduced to mere spectators,“ Emmar said in statement.

“Having delivered projects like HICC -convention centre and five star hotel -and an 18-hole golf course in Hyderabad we feel part of this state. We hope the state government protects the interests of corporates which is crucial for Andhra's image as a future investment destination,“ the company added.