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SIMA chief hails decisions of Electricity Commission

02
Dec '08

Tamil Nadu Electricity Regulatory Commission (TNERC) held a State Advisory Committee meeting on 18.11.2008 and the public hearing on 21.11.2008 responding to the Miscellaneous Petition No.42/2008 filed by Tamil Nadu Electricity Board (TNEB) seeking four times penal charges for the excess demand recorded and energy consumed beyond 60% quota fixed by TNEB for the HT industry with effect from 1.11.2008.

The TNERC has favourably considered various pleas made by the industries during the public hearing and issued an Order on 28.11.2008. The Order includes recommendation of implementing high speed diesel oil model, a recommendation made by SIMA to tide over power crisis for the next three or four years to sustain the survival of the industry in Tamil Nadu and maintain Tamil Nadu as No.1 State in the country in textile business.

Dr K V Srinivasan, Chairman, The Southern India Mills' Association (SIMA) has profusely thanked the Hon'ble Commission for favourably considering the submissions made by the Association and issuing an Order on 28.11.2008. Dr Srinivasan has mentioned that the Order issued with regard to utilization of banked wind energy generated between 1.4.2008 and 31.10.2008 in five equal monthly instalments during 1.12.2008 and 30.4.2009 by enhancing the demand and energy quota proportionately is a major relief and encouragement for the textile industry which accounts for 75% of the wind turbine generators installed in the State accounting to over 3000 MW.

He has appreciated for reducing the penal charges to three times and also rejecting the proposal of TNEB to set off the excess consumption of energy in one quota period in the following quota period as there is already a penal charge of three times for exceeding the quota. He has also appreciated TNERC for making the Order prospective. However, Dr Srinivasan has appealed to the Hon'ble Commission to verify the data provided by TNEB with regard to actual generation, actual shortage and actual distribution of power shortage across the industry and ensure equal distribution of power shortage.

He has further appealed to the Commission to draw necessary principles and protocols in line with the Maharashtra State Electricity Regulatory Commission for load shedding and power cut and issue necessary orders at the earliest to minimize the losses incurred by the industry and safeguard the employment of several millions in the State.

Dr Srinivasan has opined that a uniform power cut of 20% to 25% would be an ideal solution; he has added that implementing the diesel oil captive general model would be the ultimate solution to tide over the power crisis in Tamil Nadu for the next three or four years. SIMA Chief has also thanked the Hon'ble Commission for favourably recommending the diesel model proposed by the Association to tide over the power crisis in the medium term.

Dr K V Srinivasan has pointed out that the entire textile industry which pays over Rs.2000 crores annually as local taxes, over Rs.3200 crores as electricity bill, accounting 50% of the spinning capacity in the country, 1/3rd of the textile size in the country, earning over Rs.40,000 crores as foreign exchange and invested over Rs.35,000 crores for technology upgradation and expansion during the last five years would lead to closure if 90% capacity utilization is not achieved.

Dr Srinivasan has mentioned that with the proposed power restriction, the textile industry would be able to achieve only 40% capacity utilization which will lead to grinding halt of the textile industry.

Southern India Mills' Association

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