New Delhi, June 27 -- India's small businesses are grappling with a double blow from the ongoing West Asia conflict-frequent power cuts and tighter restrictions on diesel purchases-disrupting factory operations and raising production costs, according to two people aware of the matter and an MSME industry representation reviewed by Mint.

Power cuts caused by grid tripping and load shedding amid soaring temperatures and peak electricity demand are forcing factories to halt production several times a day, MSME executives told Mint.

"There are 7-8 power trippages and outages every day," said Neeraj Kedia, managing director of Uttar Pradesh-based Chakradhar Chemicals Pvt. Ltd., a zinc sulphate manufacturer. "When there are adverse weather co...