Coimbatore: Industry associations in Tamil Nadu have unanimously agreed to bear 25% share of the additional cost incurred for operating diesel gensets to meet the acute power shortage being faced by the state.
The decision was taken at a meeting held on 18September after Power Minister Arcot N Veerasamy announced that the idle capacity of furnace oil and high speed diesel oil captive generators would be partially utilised for captive consumption to meet the power shortage.
Industries have proposed to share the additional net cost of captive power generation and consumption in the ratio 75:25 between the government and industries. The 25% share would be borne equally by high tension and extra tension consumers and commercial establishments, he said.
As many as 55 industrial units and associations, including Southern India Mills’ Association participated in the meeting, SIMA chairman, Dr K V Srinivasan said here.
The textile industry alone accounts for over 50% of the HT power consumption in the state, he added.
Industries in Tamil Nadu have invested over Rs50,000 crore in the last five yeas with the textile industry alone investing around Rs35,000 crore, Veerasamy said. If the present power crisis continued, all investments would soon become Non-performing Assets, he added.
Hailing the government’s move, textile body Southern India Mills’ Association (SIMA) appeal to quicken the implementation of the proposal submitted by the industries.
The total additional cost for operating gensets for the current diesel rate would work out to Rs6.41 per unit of power excluding vat, SIMA chairman K V Srinivasan said.