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HT industries' associations demand increased power cut

31 Jan '12
3 min read

The acute power shortage being experienced by the HT power consuming industries in Tamilnadu since 2008 have made the industries highly incompetitive, suffering huge costs on account of power shortage. The HT consumers in general have commitments towards payment of loans, interests, commitment towards export and wages to the workforce.

The industries are neither able to meet their commitments nor close the units. The HT industries have already been suffering due to various factors including availability and engagement of labour. The power shortage in the State has only added the woes of the HT industries.

In a joint Press Release issued, Mr.S.Dinakaran, Chairman, The Southern India Mills' Association (SIMA), Mr.Mahendra Ramdas, President, Tamilnadu Electricity Consumers Association (TECA), Mr.S.V.Devarajan, President, South India Spinners Association (SISPA) and Mr.N.Ramaswamy, Chairman, Indian Institute of Foundrymen (IIF) said that realizing the inevitability of the power shortage, the industry Associations had several times come forward and put their proposals before the Government and the Electricity Board to mitigate the losses for both the industry and the Electricity Board. One such proposal is accepting the increase in the power cut from the present level of 20% to 40%.

Earlier, in the years 2007 and 2008, in order to streamline the power shortage, the then Government had declared weekly power holiday on the basis of regions to streamline the power supply. However, this had not worked practically at the implementation, as many consumers had floated the power holiday and drew power from the grid thus making the purpose of power holiday as a futile exercise.

Therefore, they insisted that the Government should consider increasing the power cut from the present 20% to 40%, as the power holiday will not suit the working of all the HT industries, in view of high number of workers employed in shifts, and avoid load shedding daily for four times to source both intra and inter-State purchase to mitigate load on TANGEDCO.

The industry leaders emphasized the need to carry on the maintenance work in the Electricity Board to avoid line losses and remove bottlenecks in the wind evacuation problems to avoid wastage of wind energy. They have 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.

It was also appealed to the Government to exempt VAT on high speed diesel oil to encourage captive generation and give further relief to TANGEDCO. If all these measures are implemented it will have win-win situation for the industries as well as TANGEDCO, said the Presidents of industry Associations.

Southern India Mills' Association

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