Transformer repair units face closure as UP discoms fail to pay

THEIR FACTORIES ARE CLOSE TO SHUTDOWN RENDERING OVER 15000 FAMILIES WITHOUT INCOME.”

Some 147 transformer repair units, in operation for the last 50 years, are on the verge of closure because various discoms of the Uttar Pradesh Power Corporation Limited owe them almost Rs 170 crore. This pending amount has been accumulating since November 2018.

In a press conference at the Press Club on Friday, officebearers of the UP Transformer Industries Forum, Indian Industries Association, Awadh Chamber of Commerce & Industries along with Laghu Udyog Bharati highlighted the danger of closure faced by 147 transformer repair units in the state, which could leave 15,000 families in a fix.

Chetan Bhalla of the UP Transformer Industries Forum said, “The GST dues have piled up on these units; they’re unable to clear their electricity dues and other taxes. All of them being MSMEs, have taken bank loans and this delay in payment has resulted in their accounts being on the verge of being declared NPA. Their factories are close to shutdown rendering over 15000 families without income.”

UP Transformer Industries Association officer-bearer Sanjeev Agarwal said, “Due to the lack of liquidity of funds, almost 50 factories have already shut down and those which are still running somehow have no work. Through this press conference, we hope to get the government’s attention towards the problems being faced by the existing MSMEs.”

He said, “We see a ray of hope as chief minister Yogi Adityanath has instructed all state-owned boards/divisions/ discoms to clear their dues before Diwali to bring in the flow of funds into the market. Now, it is up to the officials of discoms and the UPPCL to clear dues and issue new orders.”