The Hindu Business Line : Chennai’s continuous process units on 5-day ‘power holiday’

Major continuous process industrial units, including Hinduja Foundries and Madras Fertilizers Ltd, have declared a five-day ‘power holiday’ and stopped production because of power shortage, according to sources in the know.

Over the last one week production at Ashok Leyland, Royal Enfield, MRF and other manufacturing units with plants in the industrial belt north of Chennai have been hit as they are facing an eight-hour power cut daily.

The Tamil Nadu Electricity Board has communicated to the continuous process industries in North Chennai that it would not supply power to the units between 16 and 20th of every month till the power situation improves.

This is in line with the demand from continuous process industries that prefer this option to a daily power cut, which makes operations unviable through the day. Power would now be available for the other 25 days, apart from the weekly holidays. Effectively, these units would work only about 20-22 days a month.

‘UNVIABLE OPERATION’

Ennore Foundries officials said the power holiday was preferable over the eight-hour power cut since October 9, which made operations unviable. The electricity board has committed to supplying power continuously on the other days, so the foundry would be in operation for about 21-22 days a month leaving out the weekly holidays. But the utilisation of power would be better on the days that supply is available.

However, over 2,000 workers at Hinduja Foundries have been affected as they get only half-wage for the five days the unit is shut. Also, they fear further losses on production incentives.

Mr R. Seshasayee, Managing Director, Ashok Leyland, said that production at the facility has been partly hit due to the power shortage situation, apart from the company’s own correction in inventory. For the continuous process industries the remedy is to allow them to work for a few days continuously and stagger availability. But this should be organised to ensure that the sum total power demand is not affected.

Company officials in Royal Enfield also acknowledged that production has been hit due to the 8-hour power cut daily. The paint shop is shut down for four hours a day. The company that runs on three shifts a day is trying to maintain operations with diesel generator sets as they face a stiff order back log.

Union representatives in MRF say that with eight hours of power cut a day, four hours during the forenoon session and four in the afternoon, production has been hit. This would mean that workers are likely to lose production incentives .

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TNEB to buy surplus power from cogeneration, captive plants

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