TNEB to float tenders for purchase of 200MW to supply to industry
Vivek Narayanan, TNN 9 December 2009,
CHENNAI: The New Year may have good news in store for industry in the state. The Tamil Nadu Electricity Board (TNEB) will float tenders for the purchase of over 200 megawatt (MW) of power to supply to production units during the peak hour restriction between 6pm and 10pm.

In November last year, TNEB had imposed a 40% cut on demand for HT consumers such as manufacturing units, who were also asked to stay off the grid between 6pm and 10pm. The objective was to manage the power crisis in the state and to supply power to domestic consumers. On May 26, 2009, the demand cut was reduced to 30%; on June 30, it was further reduced to 20%.

Many industries, including the power loom industry, which have to function 24 hours a day, were finding it difficult to remain off the grid during that time. They faced production losses mounting up to 40%. Confronted by the problem, the Confederation of Indian Industries (CII) and the Southern India Mills Association (SIMA) approached TNEB, seeking power supply during the peak hour restriction period.

"Many manufacturers want TNEB to supply power during the four hours when they are supposed to remain off the grid. Hence, we will be floating tenders soon to purchase 200 MW from the open market," said a senior TNEB official.

J Thulasidharan, chairman, SIMA, said that the government was yet to provide a draft of the terms and conditions. "We wanted TNEB to provide power to us by buying power from outside. Many industries were getting affected due to the power cuts. Most probably, we will start getting power from January," he said.

Industry sources said that the power load in the textile industry alone was over 1,000 MW. Using gensets increased power costs by about 30%. "Now the situation is under control due to rains. Once the showers stop and agricultural demand increases, TNEB will face power shortage. We are keeping our fingers crossed," a source said.

About 250 MW of power may be saved in the coming two months with the harvest season nearing and agricultural demand having dipped.
State electricity minister Arcot N Veerasami had earlier assured that an additional 2,800 MW would be generated and added to the Tamil Nadu grid, to meet the future requirements of the state, including that of new industries.