Power cuts: Protest closure by Coimbatore industries on May 5

Industry associations in MSME sector in Coimbatore region have called for a day's closure on May 5 demanding uniform power cut for all HT consumers. It will also be to urge the State Government to demand 75 per cent share of electricity generated by the Central power generating entities in the State.

The associations have also decided to fight against the reported decision of the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) to levy a cess on captive power generated by industries to keep factories running during power cut.

Speaking to newsmen here today, Mr M. Kandhaswami, President, Coimbatore District Small Industries Association (Codissia), said according to reports, the corporation was stated to have spent Rs 5,865 crore in a year for purchase of power from outside, which was equivalent to the cost of establishing a power plant with 1,000 MW capacity. In fact over a five-year period, nearly Rs 19,350 crore was spent by the State to procure power from outside to bridge the demand-supply gap.

He said instead of finding a long-term solution to meet power requirements of the State by increasing the power generation capacity, the Government had opted for temporary solutions to tide over the power shortage, which was responsible for the current power famine the State is facing.

The Codissia President denied that the move to observe a day's strike by the industries was politically motivated or it was against the State Government. The decision was not taken under any duress and it was a ‘free decision' taken by the industries which want to take their plight to the notice of the State Government.

Mr Kandhaswami said Coimbatore industries want the power cut to be implemented uniformly for all HT consumers in the State including MNCs, SEZs and commercial consumers and load shedding should be extended all across the State, including Chennai. The State also should draw up plans to create power generation capacity to meet emerging demand and the needed infrastructure to provide power to consumers.

Other demands of the industry associations including TANSTIA, Codissia, ICCIC, Siema, SIMA, IIF, TACT, SISSPA etc included allocation of 75 per cent of power generated by Central undertakings in the State to Tamil Nadu, strengthening of the Southern grid for transmitting surplus power from the North and payment of outstanding dues to the wind power generators so that investors are encouraged to make fresh investment in wind energy sector.

The Government should be aware of the ground reality before assuring foreign companies uninterrupted power supply. When power cut is enforced it should be done uniformly without any favouritism.

Mr Kandhaswami put the value of the loss in production due to a day's closure, in which about 50,000 units in Coimbatore and Tirupur districts including textile mills are expected to join, would be about Rs 200 crore and the revenue loss to the Central and State governments would be about Rs 20 crore. Nearly 2.50 lakh workers would join the strike.

Asked about reports that TANGEDCO was contemplating to impose a cess on captive power generation and whether it was legally tenable, the Codissia President said even about five years back a similar proposal was mooted by the erstwhile TNEB which was later withdrawn after representations from the industries. This time also the industries would ask for its withdrawal since it would hit the industries using captive power generation and would push up cost of production.

He said the industry associations in other centres in the State have also accepted the call for observing a day's strike on May 5 to press their demands. A rally and meeting will be held in Coimbatore on that day.

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