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Understanding Economics

The Siricilla Tragedy: Power Tariff Hike and Weavers' Plight

the Siricilla Tragedy: Impact of Power Sector Reforms

Siricilla Tragedy

The Ramifications of Power Sector Reforms on the Weavers' Livelihood


As part of the broader economic changes under liberalisation, privatisation, and globalisation, the government initiated reforms in the power sector. However, one of the most significant consequences of these reforms has been a substantial increase in power tariffs. This hike in electricity costs has had a severe impact on powerloom operators, who form a vital workforce in the cottage and small-scale industries.


Powerlooms heavily rely on electricity, and the surge in tariffs has placed a tremendous burden on these industrial workers. Despite the increase in tariffs, power producers have failed to ensure consistent and reliable power supply to the powerloom industry. This lack of quality power supply has exacerbated the challenges faced by powerloom workers, many of whom were already struggling due to the high tariffs.


The repercussions of these circumstances were deeply felt by the weavers whose wages were directly linked to cloth production. Frequent power cuts not only disrupted production but also resulted in reduced wages for the weavers, compounding their already precarious financial situation. Trapped in an escalating crisis, fifty powerloom workers tragically took their lives in Siricilla, a small town in Andhra Pradesh.


The Siricilla tragedy serves as a poignant reminder of the complex and far-reaching impacts that economic reforms can have on vulnerable communities and their livelihoods. It calls for a thorough examination of the power sector reforms to ensure the well-being and stability of the weavers and other affected sectors in the wake of policy changes.

Disclaimer: The case study presented here is for informational purposes only and does not constitute professional advice or specific recommendations. Readers are encouraged to conduct further research and seek expert guidance before making any decisions based on the content. While efforts have been made to ensure accuracy, there may be human errors or unintentional inaccuracies. The author and publisher are not liable for any losses or damages arising from the use of the information provided in the case study.

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