The Hindu Business Line : SIMA writes to CM on power supply crisis

Coimbatore, Oct. 10 The Southern India Mills’ Association (SIMA) has sent an SoS to the Tamil Nadu Chief Minister to utilise the idle captive power generation capacity available with the industrial units to save the textile industry from complete collapse, because of the steep power cut enforced by the TNEB (Tamil Nadu Electricity Board).

The textile mills have been incurring cash losses as they have been operating for the past eleven months much below the break-even point and the latest instructions on power consumption would send the industry hurtling towards closure, the association fears.

In a press statement issued here on Friday, Dr K.V. Srinivasan, Chairman, SIMA, Coimbatore, said the TNEB’s fiat to the industries regarding not drawing power from the grid between 6 p.m. and 10 p.m., in addition to the five to eight hours scheduled/unscheduled load shedding daily, was a shocker to the textile industry that was already in the grip of recession and which was incurring huge cash losses.

Prevent shutdown

He requested the Chief Minister Mr M. Karunanidhi, to come out with a proposal to utilise the idle captive power generation capacity of about 3,500 MW using diesel, which was available with the industrial units, by reimbursing the cost of power generation and to save the industry from a complete shutdown. This was the only option available with the Government to tide over the power crisis. Wind and hydel power generations were seasonal in nature and as the entire country is facing a power famine, Tamil Nadu could not hope for any rescue from other States or from the Central grid or from independent power producers.

Mr Srinivasan argued that procuring power from the industries using diesel gensets would be cheaper compared to the price the State was paying independent power producers. The cost of reimbursement of power generated by industries would be Rs 11 a unit, as against the Rs 15 a unit TNEB was now paying to independent power producers. The industry was only seeking uninterrupted power supply and not any subsidy.

Utilised capacity

He said the average capacity utilisation in textile mills during the past eleven months was well below 75 per cent, as against the minimum utilisation of 90 per cent needed to achieve break-even. This has led to cash losses, he added. TNEB’s restriction on power supply would limit the capacity utilisation to 60 per cent leading to closure of the textile mills and social unrest.

More Stories on : Power | Textiles | Tamil Nadu

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page