Auto component makers want cost-effective options

Even as the State appears to have succeeded in tiding over power problem for the time being, auto component industries have sought a complete waiver of wheeling charges, particularly in times of critical shortage, to bring down expenditure.

Most players in the segment want the government to examine the proposal in view of the burden that spot rates impose on power-intensive industries.

Also, the sector is in favour of the government holding negotiations with the Centre on downward revision of prices of natural gas, which is a cost-effective alternative fuel for captive generation.

Use of natural gas should be promoted to minimise the dependence of industries on coal for keeping the plants operational at relatively less costs and without major supply constraints.

These were the two crucial suggestions that the Automotive Component Manufacturers’ Association of India (ACMA) and the Andhra Chamber of Commerce and Industry Federation (ACCIF) made to the government for promoting the automobile sector, which is beset by the absence of large Original Equipment Manufacturers (OEMs) that spur growth by attracting ancillary units.

“The gas grid proposed by the government will be extremely useful for industries in bringing down power generation costs. It should, therefore, be quickly acted upon,” an ACCIF representative said. He also stressed the need for relaxing norms pertaining to purchase of power from within or outside the State and welcomed the government’s decision to set up 400 KVA sub-stations across the State for streamlining transmission and distribution.

The proposed sub-stations, which cost not less than Rs. 200 crore each, include a technologically advanced gas-insulated one coming up in Vijayawada.

These and other big power projects, which are essential for the capital, are jointly pursued by the AP-Transco and the Southern Power Distribution Company Limited.

Cabling work

For the record, underground cabling work, which was launched on a pilot basis at some places in the capital region, is an important step aimed at mitigating the impact of severe cyclones. Similarly, box-type poles are sought to be replaced with spun-poles with the same objective, as an estimated 50,000 poles were razed to the ground in north coastal districts by Cyclone Hudhud.