TN govt urged by SIMA to streamline electricity supply

21 Jan '12

5 min read

Mr.Dinakaran has stated that the textile industry needs power round the clock through out the year. He has added that textile industry is the only industry which consumes power at constant load through out the year and thus fetches maximum margins / revenue to the TANGEDCO and this is the reason why the States like Andhra Pradesh provides tariff concession for textile mills up to Re.1/- per unit.

SIMA Chief has stated that the State is going to face acute power shortage during January to mid-May 2012 and already the load shedding period has exceeded five hours in a day and the position would aggravate in the coming weeks. Therefore, all the major industry Associations in the State met the Chairman and Managing Director of TANGEDCO on 5th January 2012 and submitted a single point memorandum to mitigate the power crisis by increasing the power cut from 20% to 40% across the State for all HT, HT commercial and LTCT to ensure uninterrupted supply and also reduce the load shedding to two hours. Mr. Dinakaran has stated that increased power cut to the HT industries would enable them to source power through power exchanges or independent power plants and go off the grid which would enable TANGEDCO to ensure better power supply to other consumers particularly domestic sector. As the examinations are approaching, reduced load shedding is essential to ensure that students appearing for examinations are not affected.

Mr.S.Dinakaran has stated that Chairman and Managing Director of TANGEDCO has promised to consider the proposal on demand side management positively in a shorter duration and make suitable announcement. Against this background, SIMA Chief has urged the Hon'ble Chief Minister to direct TANGEDCO to streamline the demand side management policy and increase the power cut for the industries to minimize the losses.

He has also appealed to remove the bottlenecks in the wind evacuation problems to avoid wastage of wind energy when the State is starving for power. He has also requested the Government to extend the exemption of generation tax and also extend the VAT exemption on furnace oil till the R&C measures are in vogue to give further relief to TANGEDCO.

He has also appealed to the Government to exempt VAT on high speed diesel oil to encourage captive generation and give further relief to TANGEDCO.

Southern India Mills Association (SIMA)

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