Industry hails TN govt decision to reduce duration of power cuts

Chennai: Industry has welcomed state government’s decision to reduce the duration of power cuts in high-tension industrial units and commercial establishments other than peak hours from 40 per cent to 20 per cent.

Tamilnadu Small and Tiny Industries Association president K Gopalakrishnan welcomed the decision of Chief Minister J Jayalalithaa and said this will usher in a new lease of life to the struggling micro small and medium enterprises.


He said this would help the small units who were unable to spend money on generators. “A 50 kilo volt amperes (KVA) generator costs Rs 5 to Rs 6 lakh and the operating costs comes to around Rs 14 per unit. It is not the cost of the generator but the operating cost that kept the small units away,” said Gopalakrishnan.

He said in the last six months about 25 to 30 per cent of units fell sick due to power cuts, raw materials price increase and loss of orders. He said TANSTISA is going to conduct a survey on how many units fell sick in last two years.

He said the sick units fail to get noticed and the government has hardly any data of failed enterprises. “They only have data about the units that have registered,” said Gopalakrishnan.

He said that TANSTIA is organizing an event on October 7 to thank chief minister and the government for improving the power situation.

Japan External Trade Organisation director general Hidehiro Ishiura welcomed the move and said JETRO would seek further reduction and urged the state government to work towards zero power cut.

Asit K Barma, Federation of Indian Chambers of Commerce and Industry convenor, manufacturing panel, Tamil Nadu State Council told Express that that the reduction in duration of power cuts for industries is a positive step and it will help boost industrial output. “This is a good beginning and result in lot of positive vibes in industrial output,” he said.
The power crisis has reduced the production capacity of many units. On an average, a unit runs to a capacity of 80 per cent but after the power crisis industry output is down to 30-40 per cent. This crisis has further mounted the problem of repayment of loans, according to industry experts.