The Hindu : Front Page : Centre to provide 1,200 KL diesel daily for captive power plants

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Centre to provide 1,200 KL diesel daily for captive power plants

T. Ramakrishnan

CHENNAI: The Centre has agreed to provide 1,200 kilolitres (KL) of diesel every day for running captive power plants of industry to tide over the problem of power shortage in the State, according to Electricity Minister Arcot N. Veeraswami. Pointing out that Chief Minister M. Karunanidhi wrote to Union Petroleum Minister Murli Deora for the fuel at concessional rates, Mr. Veeraswami told The Hindu on Friday that the Union Minister had given an assurance to Union Minister for Communications A. Raja on the allotment of diesel at Rs. 37 per litre for operating the captive power plants of the industry during peak hours in the evening. The Chief Minister’s intervention became necessary as oil companies had said they could provide diesel only at about Rs. 47 per litre.

Under the proposed scheme, the industry would not draw power from the TNEB, but run the captive power plants during the peak hours to meet its requirements. Through this arrangement, the Board expected a relief of 1,000 megawatt (MW), which would be made available to the farm sector and domestic consumers, the Minister said.

Noting that the cost of power through diesel generator sets would be Rs. 11 per unit, he said that while the State government would contribute Rs. 6.60, the industry would have to bear Rs. 4.40. Already, the government had exempted the levy of value added tax on using furnace oil for captive power plants. Besides, the government was making efforts to tap 500 MW from sources such as biomass and cogeneration in sugar mills, Mr. Veeraswami said.

Earlier, at the Board headquarters, the Minister held negotiations with the representatives of various trade unions on the issue of restructuring the TNEB. The proposed entities would not be privatised and the workers’ interests would be safeguarded. He conveyed to them that 20 per cent bonus would be paid to the employees of the Board this time. A couple of unions expressed reservation over the proposal of restructuring the Board, he said, adding that the matter would be placed before the Cabinet, slated to meet on Tuesday.

V. Ramachandran, general secretary of the Tamil Nadu Electricity Workers’ Federation, said the proposal would eventually lead to privatisation. S.V. Angappan of the Accounts and Executive Staff Union said that if the implementation of the plan to restructure the Board was inevitable, the interests of the employees and pensioners had to be protected.

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