The Hindu Business Line : CII urges TNEB to use idle captive power capacity

Chennai, Oct. 10 The Confederation of Indian Industry (Southern Region) has urged the Tamil Nadu Electricity Board to use the 3,500 MW of idle captive generation capacity available with the industry to tide over the power shortage. It has come out with a list of suggestions to share the additional expenses of the high cost power between the industry and TNEB.

The release quoting Mr Manikam Ramaswami, Chairman, CII (Tamil Nadu State Council), said the electricity board could use a part of the idle captive power capacity to bridge the power shortage during the peak demand period. A medium-term solution is needed to ensure the smooth operations of the industry. The shortage could increase exponentially over the next three years before some of the power projects announced by the State Government start generating power.

CII has suggested that the additional cost of captive power (net of taxes), generation and consumption could be shared 75:25 between the Government, industries and commercial users. It said the Government has to ensure adequate availability of high speed diesel for fuelling the diesel generator sets. It further suggested that all taxes on captive power generation and consumption, including generation tax could be waived. It also said the additional fuel cost to the industrial units could be adjusted in the monthly current consumption bill; the fuel cost reimbursement could vary depending on the market rate for diesel and that the average cost would have to be worked out for a particular period.

Tamil Nadu is among the preferred destinations for a range of industries, including information and communication technology, automobiles and aerospace. This increase in investments will drive up domestic power consumption with improved standards of living. The State Government should expedite Ultra Mega Power Projects through international competitive bidding, CII said.

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