Interviews
SIMA hails Govt decision on captive power generation
22 Sep '08
5 min read
Dr K V Srinivasan has mentioned that in the absence of any capacity addition during the next three years and pouring of new investments in the State coupled with steep increase in domestic consumption, the power shortage would increase exponentially. SIMA chief has pointed out that the only way to ensure the survival of the power intensive industries in the State is utilizing over 3500 MW diesel gensets available with the industrial units on a need basis and bridge the gap in the demand-supply.
SIMA chief has mentioned that the industries have submitted the following proposals to the government of Tamil Nadu for diesel oil gensets captive generation and consumption:-
• Share the additional net cost of captive power generation and consumption in the ratio of 75:25 between the Government and Industries.
• The 25% share by the industry would be borne equally by all the HT/EHT consumers and commercial establishments.
• The additional fuel cost incurred by the industrial units towards captive power generation will be adjusted in the current consumption bill of the respective month.
• Government to ensure adequate and continuous availability of High Speed Diesel oil for operating the gensets.
• Generation tax or any other tax will not be applicable for the captive power generation and consumption.
• Uninterrupted power for the HT industries
• The fuel cost reimbursement amount will vary depending upon the market rate of diesel and the average cost would be worked out based on the prices prevailing during the previous fortnight based on the following formula:
Fuel cost reimbursement/unit = Fuel cost per litre/3.5 + variable cost (Rs.0.27) + Rs.0.25 (captive generation incentive).
• Allow banking of wind mill power without any time restriction
• A Committee consisting of representatives of industries nominated by CII and government officials headed by TNEB Chairman would monitor the system.
SIMA Chairman has appealed to the government to take a positive decision on the above at the earliest and ensure survival of the industries in the State.
SIMA chief has mentioned that the industries have submitted the following proposals to the government of Tamil Nadu for diesel oil gensets captive generation and consumption:-
• Share the additional net cost of captive power generation and consumption in the ratio of 75:25 between the Government and Industries.
• The 25% share by the industry would be borne equally by all the HT/EHT consumers and commercial establishments.
• The additional fuel cost incurred by the industrial units towards captive power generation will be adjusted in the current consumption bill of the respective month.
• Government to ensure adequate and continuous availability of High Speed Diesel oil for operating the gensets.
• Generation tax or any other tax will not be applicable for the captive power generation and consumption.
• Uninterrupted power for the HT industries
• The fuel cost reimbursement amount will vary depending upon the market rate of diesel and the average cost would be worked out based on the prices prevailing during the previous fortnight based on the following formula:
Fuel cost reimbursement/unit = Fuel cost per litre/3.5 + variable cost (Rs.0.27) + Rs.0.25 (captive generation incentive).
• Allow banking of wind mill power without any time restriction
• A Committee consisting of representatives of industries nominated by CII and government officials headed by TNEB Chairman would monitor the system.
SIMA Chairman has appealed to the government to take a positive decision on the above at the earliest and ensure survival of the industries in the State.
Southern India Mills' Association (Sima)
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