Drops two-deposit norm benefiting small industries
Tamil Nadu Electricity Generation and Distribution Corporation (TANGEDCO) has effected procedural changes in its purchase policy recently for the benefit of micro, small and medium enterprises (MSMEs).
Till now, equipment suppliers were paying two deposits with one being a security deposit and the other being a performance guarantee. Small units found these to be a complicated procedure and with 10 per cent of the bill amount always being held with the bank as deposit or bank guarantee.
The MSMEs whose profit margins were only around 8 per cent had to shell out another 2 per cent of the bill value to fulfil the conditions of the TANGEDCO.
Now, Tamil Nadu Small and Tiny Industries Association (TANSTIA) vice-president KR. Gnanasambandan told The Hindu here on Sunday that the power authorities have done away with two-deposit norm and have called for only one deposit of 5 per cent of the bill value.
“This has come in handy to hundreds of small units as this will certainly improve not only their cash flow but also the profitability to a certain extent as they would make savings from the bank charges and guarantee fees,” he said.
These moves would also benefit the TANGEDCO as it would reduce its work load on account of the clerical job of passing the same bills twice. Further, it had also streamlined its procedures related to tender policies and the submitting of documents for this purpose, he added.
While lauding the Corporation for these proactive issues, the trade body also voiced its concern over the power situation after October when the wind season was likely to conclude.
With 7025.325 MW of installed capacity (as on May 31), Tamil Nadu has the highest quantum of wind power in India. Wind mills contribute more than 3,000 MW during the season between May and October which helps TANGEDCO greatly in meeting the State's total of around 10,000 MW.
The TANSTIA urged the power authorities to expedite all power projects and enter into tie-ups with private power purchases to meet the power demand after wind season.