As expected, the prospect of the Kudankulam Nuclear Power Project beginning to produce power has brought cheer to the industry in Tamil Nadu.
However, while taking note of the fact that the electricity from the project will particularly benefit the most affected – the small and medium industries in the southern districts – industry leaders have also cautioned against complacency.
Being the home State of the project, Tamil Nadu will get 460 MW of power from the first of the two units (of 1,000 MW each), which is expected to pump electricity into the grid within two months.
Assuming operations at 90 per cent capacity (conservatively), 460 MW will translate into about four million units of electricity – at a price of less than Rs 3 a unit.
The Chairman of the Southern Region of the Confederation of Indian Industry, B. Santhanam, notes that the additional power will be a big help, but cautions that unless more power projects come up soon, the situation could worsen again.
Mr S. Rethinavelu, President of the Madurai-based Tamilnadu Chamber of Commerce and Industry, a body whose members are small and medium enterprises, holds a similar view.
Observing that many small scale units have closed shop due to power cuts, he said that once a small unit closes down, it is very difficult for the promoter to revive it.
Welcoming nuclear power for its “consistent, quality supply”, Rethinavelu wants all the power the project produces (not just 460 MW) to be given to Tamil Nadu for some time.
That the Kudankulam project will benefit SMEs in the southern States – the section that has been severely hit by the power crisis – is a point that has been stressed by almost everybody that Business Line talked to.
For instance, Rafeeque Ahmed, Chairman of the Tamil Nadu State Council of the Federation of Indian Chambers of Commerce and Industry and President of FIEO, calls for the Government to ensure that the southern districts get adequate power from Kudankulam.
Many small scale industries serving the larger footwear manufacturers have closed down, as power costs have increased over the last two years from Rs 10 a pair of shoes to Rs 21 now, Ahmed said.
ramesh.m@thehindu.co.in