The Hindu Business Line : Coimbatore units to strike work today against power cut

The industrial units in Coimbatore, second only to Chennai in terms of the spread of industrial activity in Tamil Nadu, have put their thumbs down to the latest announcement by the Government in tackling the power crisis and have stuck to their decision to go on a day’s work stoppage on Wednesday.

Their proposal has got a boost with the Southern India Mills’ Association (SIMA) deciding to join the strike.

The contention of industry was that the latest move by the Government would only increase their misery as the quantum of power cut would go beyond 50 per cent to the HT consumers since they have to keep away from the State grid during 6 pm to 10 pm, in addition to the 40 per cent power cut.

Large units’ woes

According to Mr K. Ilango, President, the Coimbatore District Small Industries Association (Codissia), the 40 per cent power cut imposed on the HT industries was in addition to the restriction on their drawing power from the grid during the evening peak hours of 6 pm to 10 pm. This effectively increased the real quantum of power cut beyond 50 per cent. Apart from the large industries that would be hit by such a crippling power cut, their suppliers and the job working units also would be impacted due to reduced working of the large units.

For the low tension current transformer (LTCT) and the other LT consumers, their productivity would be less by about 20 per cent compared to the previous year and any expanded capacity would have to remain idle due to lack of power supply.

Captive power

He said in a statement that unless the Government combined the power cut announcement with the demand of the industry to use the captive power generation facility available with it, it would not help the industries.

He said though there was a huge captive power generation capacity of 3,000 MW available with the industrial units, the high cost of power generation of around Rs 11 per unit was keeping the industries at bay. If the Government was willing to bear the difference in cost of captive power generation and the cost of TNEB power at Rs 4.20/unit in peak hour, the industries would be willing to use the generators continuously, easing the pressure on the State grid.

Mr Ilango argued that the TNEB would be only paying to the generators of captive power the cost it was paying to the independent power producers - Rs 10-11 a unit and it would have the advantage of no line loss. Apart from 20,000 SMEs in Coimbatore, around 50,000 SMEs who are associated with the Tamil Nadu Small and Tiny Industries Association (TANSTIA), also would down the shutters on Wednesday.

Dr K.V. Srinivasan, Chairman, SIMA, said the decision of the Tamil Nadu Government on restriction of power use by the HT industries would increase power cut from 40 per cent to 50 per cent.

Dr Srinivasan wanted the Government to immediately announce the implementation of HSD Oil Model in the State to overcome the present crisis. He said that around 300 MW in co-generation (sugar industry), around 150 MW in furnace oil captive power generation, around 50 MW in LSHS oil gensets and around 3,500 MW HSD oil generator capacities were available with various industrial units across the State. Even if 50 per cent of these idle capacities were put into operation, the State could easily overcome the existing power crisis.

He estimated that the one-day stoppage of production would result in Rs 50 crore production loss to the spinning sector and Rs 230 crore production loss to the entire textile industry in the State.

More Stories on : Power | Industry Associations | Tamil Nadu

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