According to reports, Industry organisations in Tamil Nadu have welcomed the state government’s decision to withdraw the mandatory power holiday, which was earlier imposed on the industry due to the severe power shortage in the state.
Southern India Mills’ Association (SIMA), which thanked the government for the aggressive steps taken to mitigate power crisis in the state, requested measures to ensure proper evacuation of wind power.S Dinakaran, chairman of SIMA, said partially relaxing the restriction and control measures would help the industry to improve its performance.
The removal of both the power holidays and reduction of load-shedding to three hours for the industry would enable the industry to improve the capacity utilisation and also reduce the consumption of high-cost diesel power and third-party power, besides providing continuous employment to the workers, he said.
The state had to face severe challenges due to the poor maintenance and frequent break downs of the power stations, delay in executing the new power plants, poor central allocation of power, corridor congestion and reduction of power frequency tolerance by the CERC.
He requested chief minister J Jayalalithaa to make necessary arrangements to ensure proper evacuation of the entire wind power to the tune of 3,500 Mw during the wind season and avoid any blackout to improve the power supply position and also to sustain the viability of the wind mills.
Ravindra Sannareddy, chairman, Assocham’s southern regional council, hailed the decision as a major support to the industry. He said that the decision would serve as a morale booster for the industry in the state.
The state government, in February this year, had imposed a one-day power holiday on the industry to manage the power supply amidst severe power shortage in addition to the 40 per cent power cut to all the industrial and commercial consumers.
This had slowed down the pace of manufacturing in the state, putting the industrial units in the state at a disadvantage as against the industries in the neighbouring states.
On May 31, 2012, the government had announced its decision to reduce the compulsory power cut by one hour for households, and has also decided to withdraw its compulsory power holidays for high-tension and low-tension industrial units, considering the increase in supply with the reopening of Mettur plant operations and increase in wind power generation.