SIMA - Power cuts to lead to 36% capacity utilisation loss

22 Jul '08

5 min read

The Hon'ble Electricity Minister of Tamil Nadu at the meeting held on July 18, 2008 with the Industry Associations and HT / EHT consumers requested the industry to co-operate for a 24 hour power holiday in a week and ensured uninterrupted power supply for the remaining days.

The Hon'ble Minister had also promised implementing Pune Model and reimburse the variable cost incurred by the industrial units for operating the idle gensets available with the industry and bridge the gap in the supply-demand and ensure uninterrupted power supply throughout the State.

On the contrary, the textile mills in various parts of the State have received intimations from TNEB announcing 2 hours shut down during day time and instructing not to draw power for 4 hours from 6 pm to 10 p.m. daily apart from adhering to 24 hours power holiday in a week thus totalling a minimum of 60 hours power shut down period every week. This would work out to minimum 36% capacity utilisation loss, loss of jobs to lakhs of people and heavy cash loss for the textile industry which would make the industry sick and lead to closure very soon.

In a press release issued here today, Dr.K.V.Srinivasan, Chairman, The Southern India Mills' Association (SIMA) has stated that the textile mills are shocked to receive communications from the TNEB contradicting the promise made by the Hon'ble Electricity Minister on 18th July 2008. He has added that the Hon'ble Minister had also indicated that the Government would call for a meeting if the situation further worsens at a later stage and review the position.

Under such a scenario, all the textile mills in the State have strongly protested the unilateral stand taken by TNEB by announcing 60 hours scheduled stoppage in addition to unscheduled power trippings which have become the common phenomenon during the last three years.

SIMA Chief has stated that such a serious power shortage has occurred first time in the recent past. He has further stated that the industry which has been already reeling under severe recession due to soaring cotton price, high bank interest rate, high transportation cost, etc., is saddled with severe power shortage in the State.

SIMA Chairman has pointed out that the TNEB has never distributed the power shortage uniformly across the state as per the statistics collected by the Association on a monthly basis for the past two and half years. He has also stated that it is unfair for the Government to give preferential treatment for the new investors and also sanctioning new connections, particularly for power-intensive projects while the State is facing such a serious and severe power shortage problem.

Dr Srinivasan has said that the oil companies are rationing the supply of HSD Oil and restrict the quantity to 80% of the last year average consumption which might meet only 10 hours working of gensets. He has added that the industry has no other option than closing the shutters for the remaining period leaving lakhs of people jobless. He has added that this trend would soon lead to industrial unrest.

More Southern India Mills' Association (Sima) News... More Textiles News - India...