Power cuts crippling Tamil Nadu industry

By Radha Venkatesan, IANS

Coimbatore : Tamil Nadu is reeling under one of the worst power shortages in recent years that is causing unprecedented production snags and losses to its vibrant industry.


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The State Electricity Board has been resorting to frequent, unannounced cuts ranging between two hours and eight hours daily over the past one month.

While the state government admits to only a half-hour power outage, long spells of shutdowns have now become an everyday nightmare in the state, which is one of the most industrialised and urbanised in the country.

Clearly, the industrial boom over the past few years and the sprouting of nearly 120 industrial parks has critically raised the power demand by 700 MW, leading to a whopping 33 percent shortage in the state.

In particular, the city of Coimbatore – an industrial hub and textile hub once known as the Manchester of southern India – is in deeper trouble.

With over 1.7 million power connections, including 100,000 high-tension connections to factories and mills, the Coimbatore district consumes 1,200 MW of power, which is 13.5 percent of the state’s power supply of 7,800 MW.

“Sometimes there is more than eight hours of power cut. And even that is unannounced, and not at a single stretch. The power cuts are staggered and by the time we start the machinery after a power restoration, it is time for another round of power cut,” A.P. Appukkutty, the Tamil Nadu Spinning Mills Association president, told the IANS.

“Our appeals to the government to at least announce the timing of the power cuts has fallen on deaf ears.”

The frequent, sudden stoppages, he claims, has resulted in a “40 percent production loss” in the over 500 yarn manufacturing units.

“We used to produce 7,000 kg of yarn every day, but now we are forced to cut down production by 600 to 1,000 kg because of the power cuts. If we run the machines on generators, we will not be able to bear the cost,” says Alagarasan, joint managing director of Vijay Velavan Spinning Mills in the Tirupur textile town near here, with an annual turnover of over Rs.200 million.

With the power cuts continuing unabated, diesel pumps and generator dealers are doing brisk business here. It’s a near 100 percent increase in sales for them.

The wild voltage fluctuations have further added to the trail of woes of hosiery factories that began with a slump in the dollar value and a consequent drop in export orders.

“The components of our imported machineries develop snags frequently because of the voltage drop,” complains Ahill M.S. Mani, president of the Tirupur Industrial Federation.

“With very few orders on hand, we cannot afford to turn them away. But if we accept them and complete the orders using generators, we will suffer heavy losses,” he adds.

The Tirupur exporters complete the bleak picture with their chronicle of grievances.

“We have already suffered a 15 percent slump in profits this year due to the increase in rupee value against the dollar. With the frequent power cuts, we face another five percent loss,” the Tirupur Exporters Association, Secretary, G. Karthikeyan told IANS.

The textile industry has petitioned the government to ensure adequate power supply. The power crunch has already kicked up a bitter political row with the ruling DMK and the principal opposition AIADMK trading charges over power cuts.

Electricity Minister Arcot N. Veerasamy insists that the government has initiated “adequate steps” to tide over the power crisis.

The Electricity Board has purchased power from Haryana and obtained additional supplies from the central pool.

Unless the government initiates steps on a “war footing” to improve the basic infrastructure, Tamil Nadu’s avowed goal of becoming the most attractive investment destination may remain a distant dream. And so will its Vision 2011 of doubling annual exports.

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