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SIMA demands workable model for captive power generation

28 Jul '08
4 min read

At the meeting of SIMA member mills held on 24th July 2008 at Coimbatore, all the member mills have complained that the mills were incurring heavy cash losses and many units might be closed down soon if the problems are not addressed on a war footing basis.

Member mills also complained that all the mills would become NPAs soon, will not be able to serve the banks and also would become ineligible for availing TUF subsidy and the industry might collapse. After detailed deliberations, all the member mills unanimously passed the following resolutions pleading the Hon'ble Chief Minister to take various remedial measures to overcome the unforeseen power crisis being faced by the State in the recent past and prevent the industry from closure and loss of jobs to several millions of people, particularly the people below the poverty line and women from rural areas:

• Restrict power cut only for power holiday of 24 hours in a week and not beyond that.
• Distribute the power shortage uniformly through out the State without any discrimination.
• Restrict new connections which lead to additional load to the TNEB and protect the existing consumers.
• Ensure adequate supply of diesel to operate captive power plants to meet out the power shortage.
• Reduce maximum demand charges and electricity deposit proportionately to the extent of electricity supplied
• Reimburse differential variable cost of Rs.8/- per unit for running captive power plants
• Supply SKO to the industry at concessional rate

SIMA Chief further has stated that the member mills have also unanimously decided to review the situation after 15 days and decide further course of action in this regard.

Southern India Mills' Association (Sima)

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