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SIMA - Power cuts to lead to 36% capacity utilisation loss

22 Jul '08
5 min read

SIMA Chairman has stated that the Association has appealed to the Hon'ble Chief Minister and Hon'ble Electricity Minister by way of representations requesting the Government to immediately take suitable steps to minimise the losses incurred by the industry.

He has stated that the industry is fully aware of the grim power situation in the State and is willing to fully co-operate with the Government in managing the problem provided the Government comes out with a fair and transparent policy.

He has further stated that the industry has been demanding to implement the Pune Model for the last two years by operating the idle capacity furnace oil / HSD oil gensets available with the industry by way of reimbursing the additional variable cost incurred by the industrial units.

SIMA Chief has stated that over 3000 MW idle capacity are available in the industrial units and textile mills alone have over 1000 MW captive power generating capacity. He has stated that even one-third of the above capacity would bridge the gap in the supply and demand of power in the State and enable the Government to supply uninterrupted power throughout the State.

SIMA Chief has thanked the Government of Tamil Nadu, particularly the Hon'ble Electricity Minister for having agreed to consider implementing the Pune Model in principle. He has appealed to the Government to immediately take the following steps and save the mother industry from a permanent closure which accounts for 47% of the HT connected load and 9% of LT connected load:
1) Restrict the power shut down period to 24 hours per week (weekly holiday) as promised by the Hon'ble Electricity Minister and ensure uninterrupted power supply during the remaining days by strictly distributing the power shortage uniformly across the State including Chennai and multinational companies considering the abnormal situation.
2) Arrange for adequate supply of HSD oil to enable the industry to run the Gensets during the power shut down period.
3) As assured by the Hon'ble Electricity Minister, implement the Pune Model and reimburse the variable cost spent by the industrial units for operating the furnace oil / HSD oil captive power plants immediately to reduce the shortage of electricity and ensure the survival of the industry in the State.

SIMA Chief once again earnestly appealed to the Hon'ble Minister to kindly implement the above measures immediately and save the mother industry of the State.

Southern India Mills' Association (Sima)

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