"The worst affected states are Punjab, Uttar Pradesh, Haryana, Rajasthan and Delhi, thereby threatening the livelihoods of thousands of workers," the chamber said in a statement.
In Uttar Pradesh, power cuts exceed 10-12 hours a day and in the absence of corrective measures, units would have to curtail their production, it said.
Besides, industrial units in Jammu & Kashmir are also suffering from a power shortage, it added.
"Power theft, leakages and transmission & commercial losses were the main reason for power deficit in these states," it said.
The chamber said the government should take steps like transfer of surplus power from the captive units to the state grids to fight power shortages in short-run.
"Use of non-conventional sources of energy, especially for domestic usage and street lightning, is another short-term solution," the statement added.
The MSME sector accounts for 8% of the country's GDP, 45% of its manufactured output, 43% of its exports and employs over 8 crore people.