Economy

TN industries welcome Govt move on Kudankulam project

Our Bureau Coimbatore | Updated on November 14, 2017 Published on March 19, 2012

kudankulam

Industry associations in Coimbatore have hailed the decision of the State Government to take steps to commission the Kudankulam nuclear power plant.

They also want the State to draw up long-term plans to meet power demand over the next 10-15 years and also appoint a technically qualified person as the head of generation of Tangedco so as to focus on steps to augment power generation capacity that has remained virtually stagnant for over a decade.

Speaking to Business Line immediately after the State Cabinet's decision to take steps for commissioning the Kudankulam power plant, Mr Mahendra Ramdas, President, the Tamil Nadu Electricity Consumers Association (TECA), said he expected it to take five to six months before the first unit of the project attained criticality.

He said because of the constraints of grid corridor to transmit power from Tamil Nadu to North India, much of the power generated at KNPP would be available within the State for some time.

The overall power availability in the State may improve by the time KNPP begins generation because a few other power plants in the State may be ready for commissioning or expansion projects may be completed by that time, he said.

Increase in demand

Mr Ramdas, however, cautioned against becoming complacent because the State has been witnessing a 15 per cent increase in demand for power y-o-y. He suggested that Tangedco should have a separate technically qualified person to head its generation wing.

This was to focus on projects to augment power generation, particularly in the context of mismatch between demand and supply of power gears within the country.

Mr M. Kandhaswami, President, Coimbatore District Small Industries Association (Codissia), expressing relief over the State's decision, said medium and small industries have been facing 40 per cent production loss because of power cuts. Most of the factories were working for only two shifts and even these were facing 10 hours of power cut a day.

Losing workforce

Apart from loss in production and the consequent flight of business, small units were also forced to pay the full salaries to their workers, he said. The units dread the prospect of losing skilled workforce when the demand revived. But tiny units, which did not have the staying power after the power shortage turned worse in the past four months, have resorted to closure.

Mr Kandhaswami said because of prolonged production loss due to power cut, the industries would have to face30-40 per cent production loss. He wanted banks not to cut the working capital limits of industries because of lower turnover at the end of the current fiscal.

Both the industry association leaders hailed the decision of the Chief Minister for commissioning the plant and for the development works to be taken up in the region at a cost of Rs 500 crore.

The Southern India Mills Association Chairman, Mr Dinakaran, in a release welcomed the decision. The decision to commence the plant will bring huge relief to the State which is reeling under severe power shortage. The textile sector would be benefitted immensely as it is its energy requirements are immense, he said.

The SIMA chief also appreciated the allocation of Rs 500 crore for developing Kudankulam village and providing various welfare facilities to the fishermen and people living in the region.

Published on March 19, 2012
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