Lodhia’s 162bn/- investment stall due to power issues

LODHIA Industries announced that the lack of stable electricity has forced it to postpone the production of its 162bn/- corrugated iron sheets for nearly

COAST REGION: LODHIA Industries announced that the lack of stable electricity has forced it to postpone the production of its 162bn/- corrugated iron sheets for nearly five months.

The company applied for an additional 10 megawatts of power five months ago, however, Tanesco has been unable to meet the increased demand for electricity needed for the new iron sheet plant. Lodhia is also running steel and plastic factories in Mkuranga, Coast region.

“Despite significant investment, the anticipated production results have yet to materialise,” Mr Sailesh Pandit, Managing Director of Lodhia Industries, told the Minister for Industry and Trade, Dr Selemani Jafo, when he toured the factory on Tuesday.

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He added: “Five months have passed and we have not seen a return on our investment due to ongoing power delays that have hindered our operations.”

Equally, the director noted that frequent power outages are severely impacting the factory’s efficiency, stressing the critical importance of a reliable energy supply for sustained industrial growth.

“…Without the requested power allocation, we cannot initiate the production of roofing sheets.

“This will not only impact our operations but also have broader consequences, as the government will miss out additional tax revenue and be unable to reduce foreign currency expenditures,” Mr Pandit pointed out.

Lodhia Industries established in 1996 is one of the leading and fastest growing steel and plastic manufacturers in the country and currently operating in Coast and Arusha.

Mr Pandit further stated that once production begins, they expect to produce corrugated iron sheets, estimated as between 5000 and 10000 tonnes per month, adding that currently they provide 620 direct opportunities to the locals.

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Initially, the Minister urged the Tanzania Electric Supply Company (TANESCO) to ensure that they install the transformers in Mkuranga area to enable local industries to operate smoothly.

“I direct that the installation of transformers be completed within three weeks to ensure that the industries become operational,” Dr Jafo said.

He also said that Tanesco can play a pivotal role in creating a conducive environment for business development, ultimately benefiting the entire region by prioritising the supply of stable and reliable electricity to the industrial zones.

“Access to reliable electricity is essential for manufacturers to boost production and drive economic growth,” the minister said.

The Minister explained that the delay in transformer installation was caused by a tax dispute between the Tanzania Revenue Authority (TRA) and Tanesco, which has since been resolved. He directed the state-owned power supply company to ensure that electricity reaches the Mkuranga industrial area promptly.

The Mkuranga District Commissioner, Ms Khadija Ally, said that the presence of the factory will enhance the economy at both the individual and district levels.

She said that once production begins, they anticipate generating more tax revenue and the district will continue to enhance the investment environment to attract additional investors.