The Hindu : Tamil Nadu / Chennai News : Retain existing system of power cut: small units

Online edition of India's National Newspaper
Monday, Jan 05, 2009
ePaper | Mobile/PDA Version

Tamil Nadu

Tamil Nadu - Chennai

Retain existing system of power cut: small units

R. Sairam

CHENNAI: Small-scale industrial units and trade bodies of the Madurai district want the State government to retain the existing system of power cuts and gradually reduce the quantum of load shedding instead of adopting “power holidays.”

KR. Gnanasambandan, vice-president, Tamil Nadu Small and Tiny Industries Association (TANSTIA), says a company with an annual turnover of Rs.10 crore will have to spend Rs. 6 lakh every month on diesel for generator sets. The shortage in supply of diesel is compounding the industry’s misery.

The Pudur and Kappalur Industrial estates in Madurai district, which need 20 MW and 24 MW, are seeking sanction from the Oil and Natural Gas Corporation (ONGC) for a natural gas-based captive power unit. They have sought financial assistance from the Tamil Nadu Industrial Investment Corporation (TIIC).

Natural gas is available at Ramanathapuram. If uninterrupted gas supply is assured, a unit could be started. An initial investment of Rs.3 crore will be required for generating 1 MW, Mr. Gnanasambandan says.

Vehemently opposing the idea of two-day power holidays a week, Tamil Nadu Chamber of Commerce and Industry senior president S. Rethinavelu says it will be inappropriate to implement this system without dropping the four hours of peak-hour restrictions. Quite a few high-tension units have entered into long-term power purchase agreements with independent producers. However, small-scale units could not use generators or captive power units as they cannot afford diesel. Besides, the State government has not yet acceded to their demand for providing subsidy for diesel purchase, he says.

Madurai Spinners Association president C.S. Rajendran is in favour of the existing system of power cut, as the supply is more consistent under this system than the previous ones. Furthermore, the industry has got some concessions in the payment of dues. Some of the rules stand in the way of industrial units entering into power purchase agreements with private producers. “Third-party sale of power by windmills must also be allowed. At present, they can only sell to the Tamil Nadu Electricity Board or use it for their own consumption.”

P. Sitaraman, former president of the Kappalur Industrial Estate Manufacturers’ Association, wants the TNEB to consider waiving the penalties imposed on the small-scale units that exceed their quotas. The Board should adopt some other means for the industrial units to comply with the rules. “The SSIs are already reeling under the impact of global recession and credit crunch. To ensure the industry’s survival, the penalties must go.”

Furthermore, permission for starting new industries should be put on hold till the capacity addition takes place. Efforts must be made to complete all capacity addition projects expeditiously, Mr. Sitaraman says. “We cannot afford to purchase power from private players, as the cost works out to Rs. 10 a unit, compared with Rs.5 supplied by the TNEB.”

Printer friendly page
Send this article to Friends by E-Mail

Tamil Nadu