The textile industry, which is the single largest consumer of TANGEDCO in the State, is already in deep trouble to sustain its survival. The textile industry in Tamil Nadu has 1/3rd of the total business size and 47.5% of the spinning capacity of the country.
The industry which has been attracting over 60% of the total investments made in the country during the years between 2003 and 2007, could not attract any investment during the last couple of years owing to power crisis.
The State is also gradually losing its competitive advantage on account of raw material cost, transportation as the State has to outsource over 95% of the raw material from States like Gujarat and Maharashtra by spending over Rs.40,000 per lorry/ per trip which was only around Rs.10,000/- to Rs.15,000/- per lorry/per trip, a few years back. In the above situation, Tamil Nadu Electricity Regulatory Commission (TNERC) has passed an order announcing revised tariff for the year 2013-14 for the HT consumers increasing the cross subsidy surcharge steeply.
The textile industry is able to get grid supply only ranging between 35% and 45% depending upon the wind power supply. Moreover, the HT industries are subjected to 40% power cut and four hours evening peak hour restriction even during peak wind season. Though HT consumers have been demanding for equal distribution of power shortage to sustain their survival, it has not been considered by TANGEDCO.
Such a uncompetitive power scenario will not only discourage any new investment in the State but would also lead to large scale migration of the existing manufacturing facilities to other States like Gujarat, Maharashtra, etc., which have come out with innovative and industry-friendly textile policies.
Mr S Dinakaran, Chairman, The Southern India Mills’ Association (SIMA) has appealed to the TNERC to roll back cross subsidy surcharge for the HT consumers which is currently ranging between Rs.1.66 to Rs.2.07 and increased to Rs.3.40 to Rs.3.61 per unit depending upon the voltage for the HT industries. Mr.Dinakaran has also appealed to TNERC and the Hon’ble Chief Minister of Tamil Nadu not to levy any cross subsidy surcharge as long as the R&C measures are in vogue.
SIMA Chief has added that though the Madras Court has stayed the levy of cross subsidy surcharge, the Court has stated that the HT consumers have to pay the cross subsidy charges with 9% interest rate if the final judgment goes in favour of TANGEDCO.
SIMA Chairman also has stated that the HT consumers have to purchase third party power on a 24-hour basis rather than for a specific period owing to huge cost difference and the diesel power is totally unviable due to exorbitant cost. He has further stated that the corridor congestion in the Southern Load Depsatch Centre has already made the open access power cost very exorbitant and the proposed increase in the cross subsidy surcharge would make all the manufacturing units unviable.
SIMA Chairman has welcomed the TNERC order with regard to reduction of wheeling charges from 23.27 paise to 17.35 paise per unit and in respect of wind mill energy the same has been reduced from 9.31 paise to 6.94 paise per unit which works out to 40% and would benefit such consumers.
He has also welcomed the decision taken by TNERC with regard to discrimination in the incentive and rebate for the peak hour power consumption and night hour consumption and the direction issued by TNERC to TANGEDCO to carry out a study and furnish details. He has appealed to TNERC to direct TANGEDCO to carry out the same with a time frame.
SIMA Chairman has stated that the textile industry is the only industry consumes power round the clock throughout the year at a constant load and therefore supply of power to textile consumers fetches higher margin to TANGEDCO. Hence, the textile industry has been demanding for a separate tariff considering the higher load factor being maintained by the industry throughout the year.
Mr.Dinakaran has welcomed TNERC’s decision directing the industry to furnish necessary data to enable the Commission to consider the same. SIMA Chairman has also appeal to the Hon’ble Chief Minister of Tamilnadu to announce an industry-friendly energy policy to have a win-win strategy both for TANGEDCO and HT consumers particularly textile industry in the State.
