Table 7.12
IMPLICATIONS OF POWER OUTAGE
(%)
Formal
Informal
No. of vendors who self-generate electricity
90.9 91.7 Average no. of lost hours of production daily
5 6 Average % reduction of output
35.3 33.6 Average % increase in unit cost
22.4 32.5 Source Estimated from Survey Data In summary, the relatively high level of protection provided to the vending industry has contributed to a high level of employment in the sector, but while there is fairly intense competition within the industry, both domestically and from imports, the lack of competition in the market for vehicles has implied less pressure for raising cost efficiency. The industry also appears to beat a nascent stage, with very limited exports. The focus on enhancing competitiveness will initially have to be in the niche area of relatively labour-intensive parts which are less technology based. The sample vendors have come up with some useful and innovative proposals for support by government agencies and changes in policies to achieve a
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higher level of technology deepening. These need to be seriously considered by agencies like
EDB, SMEDA and the Ministry of Industries.
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