The Hindu Business Line : Coimbatore industries offered 300 MW of power at TNEB rates

Coimbatore, Dec. 4 The Coimbatore region, whose power intensive industries such as textile mills and foundries are reeling under the impact of a crippling 40 per cent power cut, can look forward to some relief with a power producer from outside the State offering, on commercial basis, supply of 300 MW.

The industries would have to bear the cost of power supply and the power cost would match the TNEB rates.

Speaking at the CII-organised ‘National Foundry Conclave ’08’ here on Thursday, Mr C.R. Swaminathan, Deputy Chairman, CII (Southern Region), without identifying the power producer, said from ‘a neighbouring State’ 300 MW of power was available for sale to industries in Coimbatore. It has to be seen whether the industries could come together to purchase this power to be utilised not only by the foundries but the textile industries as well, to overcome the power shortage.

He clarified that the proposal was at a preliminary stage and it depended on how the industries in the region could jointly negotiate and obtain this facility to mutual advantage.

Later speaking to the media, Mr Swaminathan said the power producer wanted an offtake of 300 MW for the supply to be effected. He said discussions would be held with the mills and foundries that were doing well in the region for considering the offer. The foundry units in the region could absorb about 100 MW. But if the major textile mills were also roped in, he expected the entire 300 MW could be utilised. He said the power would be offered at TNEB rates (Rs 3.40-Rs 4/unit), which “itself is a great thing”.

Estimating cost-benefit

He said there were certain issues that have to be clarified as to how the power would be wheeled and what would be the transmission loss/cost etc. The power could be supplied ‘forever’ and to that extent TNEB would be relieved of the demand pressure.

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