The Hindu : Tamil Nadu News : CII moots power cut for HT and power holidays for LT units

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Wednesday, Dec 31, 2008
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Tamil Nadu

CII moots power cut for HT and power holidays for LT units

Special Correspondent

“High Tension units will prefer lower quantum of power cut”

CHENNAI: The State council of the Confederation of Indian Industry (CII) has suggested to the State government to follow the scheme of power cut for high-tension (HT) industrial units and power holidays for low-tension (LT) units.

Manikam Ramaswami, chairman of the State council, in a letter to Electricity Minister Arcot N. Veeraswami on Tuesday, stated that the suggestion was made in the context of adoption of different policies for HT and LT with regard to sharing of power shortage.

Noting that two options – reduced quantum of power cut or no power cut during normal days with two-day holidays a week – were given at the meeting held by the Minister on Monday, Mr. Ramaswami said the CII’s past chairman of the State council had told the meeting that the organisation would get back to the government after ascertaining from its members their preference. The organisation held discussions among its members across the State.

The CII chairman said the HT units would prefer the lower quantum of power cut. When the system of power holidays was attempted in the past, it was a “total failure,” Mr. Ramaswami argued.

Based on the understanding that there would be a medium-term power shortage in the State, many units had entered into long-term power purchase agreements with independent power producers for a portion of their requirements.

Many firms had invested crores of rupees in servicing and maintenance of captive power plants.

Today, the captive power plants and purchase from the producers accounted for 400 MW to 500 MW. All the investment would become waste if the system of power holidays was implemented.

As for the LT units, Mr. Ramaswami said they preferred the system of power holidays because many of them were unable to run their equipment if the power cut scheme was in force.

Many members belonging to the small scale industrial units had just one machine.

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