The Hindu : Tamil Nadu / Chennai News : NLC power generation hit by strike

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Thursday, Jun 12, 2008
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Tamil Nadu

Tamil Nadu - Chennai

NLC power generation hit by strike

Special Correspondent

Power supply has not been too badly impacted: Veeraswami

CHENNAI: Seventy per cent of the power generation capacity of the Neyveli Lignite Corporation is being affected because of the strike by 13,000 contract workers, according to Electricity Minister Arcot N. Veeraswami.

However, Tamil Nadu’s power supply has not been too badly impacted, as the State can fall back on wind power, he said.

He was speaking to reporters on the sidelines of a renewable energy industry exhibition in Chennai on Wednesday, even as the strike entered its 10th day. He was confident that the strike would come to an end by June 13, when trade union representatives are scheduled to meet Minister of State for Coal Santosh Bagrodia for talks in New Delhi.

The talks follows Chief Minister M. Karunanidhi’s request to Prime Minister Manmohan Singh.

“We expect an acceptable solution to emerge from the talks, and we hope the strike will be withdrawn and electricity generation resumed,” he said.

If Tamil Nadu can shake off the impact of the strike, its leadership position in the wind energy sector gets much of the credit. With 3711 MW of installed capacity, the State accounts for almost half the nation’s entire wind power capacity. It draws 8.5 per cent of its grid consumption from wind energy.

Inaugurating the Green Power exhibition organised by the Confederation of Indian Industry, Mr. Veeraswami made it clear that the State had no intention of resting on its laurels. He invited investors and entrepreneurs to set up new renewable energy projects, promising them a conducive policy atmosphere.

In the solar energy sphere, the State government wants to set up solar power plants, aiming for a total capacity of 10 MW, through the private sector. This will take advantage of the new policy guidelines, under which the Central Government will pay incentives up to Rs. 12 per unit for grid-interactive solar power generation. The State will chip in with an incentive of Rs. 3 a unit.

Despite such incentives, the Minister said, the initial capital expenditure needed for solar power plants is Rs.18-Rs.22 crore per MW, more than triple the amount required for plants of similar capacity in the hydro, thermal or wind sectors. The government was in talks with international companies and governments to look at ways to reduce cost, he said.

He also encouraged corporates to invest in merchant power projects, saying this could offer lucrative returns. “You can produce power at the rate of Rs. 2.75-Rs 3 per unit and sell to the grid. But since Tamil Nadu has sufficient power during most months, you will be able to sell the surplus to anyone in India…

The Power Trading Corporation is buying surplus power at Rs. 7 per unit,” he said. The government has identified seven ports to handle imported coal, with lower ash content, for these merchant power projects.

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