Home / Knowledge / News / Textiles / SIMA hails Govt decision on captive power generation
SIMA hails Govt decision on captive power generation
22
Sep '08
Subsequent to the announcement made by the Hon'ble Electricity Minister of Government of Tamil regarding partially utilizing the idle capacity of furnace oil and high speed diesel oil captive generators for captive consumption to meet the acute power shortage being faced by the State, the industry associations had an internal meeting on 18th September 2008 to decide the ratio of sharing the additional captive generation cost.

Around 55 major industrial units and Associations including the Southern India Mills' Association participated in the meeting. The textile industry alone accounts for over 50% of the HT power consumption in the State. The industries in Tamil Nadu have invested over Rs.50,000 crores during the last five years and the textile industry alone has invested around Rs.35,000 crores. All these investments have been made hoping that the industries would get uninterrupted power supply. If the present power crisis continues, all these new investments would soon become NPAs.

Though the industries in Tamil Nadu are already incurring heavy cash losses on account of power and very many factors, all the industry Associations unanimously decided to share 25% of the additional cost incurred for operating the diesel gensets considering the benevolent approach of the Government.

In a Press Release issued here today, Dr K V Srinivasan, Chairman, The Southern India Mills' Association has hailed the government's move and appealed to expedite the implementation of the proposal submitted by the industries. He has also thanked the Government for taking a decision on the utilization of around 200 MW furnace oil based gensets and he has informed the Press that the Furnace Oil Scheme would be announced at any moment.

He has added that the furnace oil power generation reimbursement would be based on the tenders already quoted by the various industrial units in Tamil Nadu. He has appealed to the Government to announce an enhanced rate for the industries particularly, the textile industry, which is not able to avail Modvat. He has also appealed to consider the high transportation cost incurred by the industrial units to transport the furnace oil all the way from Chennai to different destinations, particularly the southern districts of Tamil Nadu.

Dr Srinivasan has mentioned that the total additional cost for operating gensets for the current diesel rate would work out to Rs.6.41 per unit of power excluding VAT. He has mentioned that the VAT would be only a notional income for the government and therefore, the same has not been considered while working out the additional cost for captive power generation. He has pointed out that the above system also saves around 18% technical and transmission loss to the TNEB since the industrial units themselves would consume the power generated by them.

He has said that initially the industries have submitted a proposal for 1000 MW power captive generation during the evening peak hours (6.00 p.m. – 10.00 p.m.). Dr Srinivasan has mentioned that the 25% share of the industries would be collected by way of fuel surcharge for the peak hour power consumption by all the HT and commercial units. He has added that the surcharge with 25% share would work out around 0.40 paise per unit.


Must ReadView All

Textiles | On 26th Jul 2017

Q1 2018 revenue at Raymond soars 14%

The consolidated revenue of Raymond Limited for the first quarter of...

Textiles | On 26th Jul 2017

Textile Corp of America to create 1000 jobs in Tennessee

Textile Corporation of America Inc, a leading textile manufacturer,...

Textiles | On 26th Jul 2017

Leather & footwear industry expecting incentive package

India’s leather and footwear industry is anticipating an incentive...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X