Home / Knowledge / News / Textiles / SIMA explores options to tackle power shortage
SIMA explores options to tackle power shortage
29
Oct '09
In Tamil Nadu HT industries are facing 20% power cut both in respect of demand and energy. Besides this, there is a load shedding of two hours daily and evening peak hour restriction between 6 pm and 10 pm. In simple terms, apart from 20% power cut, there will not be power supply for six hours in a day, which accounts for another 25%.

This has hit the operations of the textile industry and utilization has come down to just around 70% as against the break-even level of 90 per cent. It is felt by the Southern India Mills' Association (SIMA) that, this kind of situation will continue for another three to five years and the shortfall will be 1,875 MW in 2013-14.

In order to meet the power shortage of its member mills, SIMA has prepared long and short term plans. Under the long term plan, SIMA is exploring the possibility of putting a power project either coal based or gas based depending upon the availability and cost factors. In this connection, SIMA invited some of the power project companies for discussion.

In short term, it has been planned to purchase power for member mills both under the inter-state open access system as well as intra-state power purchase. At present, Tamil Nadu Electricity Board has also principally agreed for the inter-state power purchase and the traders like IL&FS and Power Trading Corporation have come forward to supply power for a shorter period of one year.

The power cost will be around Rs.7.25 per unit apart from other deemed demand charges, wheeling charges, etc. The other companies like MALCO, OPG etc., have also come forward to supply power for a period of one to two years under the intra-state power purchase. SIMA is in the process of collecting the details from the member mills for their requirements.

At present, member mills of SIMA feel that at the existing 20% power cut and two hours load shedding, the third party power could not be fully utilized. In fact, member mills of SIMA are keen in buying power during the evening peak hours. However, all the power generating companies are interested in supplying power round the clock and not exclusively for evening peak hours.

As projects on wind energy have almost come to a standstill, it is expected that the percentage of power cut will increase in due course of time, due to which it will become absolutely important and necessary to purchase power for the member mills of SIMA. In the meanwhile, SIMA is also planning to apply to TNERC to get the distribution license by forming a Special Purpose Vehicle (SPV) for the purpose of distributing, electricity to member mills.


Fibre2fashion News Desk - India

Must ReadView All

Courtesy: BGMEA

Apparel/Garments | On 27th Feb 2017

'Brands & buyers should help Bangladeshi factory owners'

Brands and buyers should come forward to help factory owners in...

Apparel/Garments | On 27th Feb 2017

Myanmar sets up new committee to revise minimum wage

The Government of Myanmar has set up a new committee, replacing an...

Courtesy: PT Indonesia Taroko Textile

Textiles | On 27th Feb 2017

Taiwan's Lealea to buy Tarako textile plant in Indonesia

Taiwan based textile manufacturer Lealea Enterprise Company, one of...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Eamonn Tighe
Nature Works LLC

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search