Coimbatore Industries Gearing Up For strike

Industries in Coimbatore are gearing up for a one-day ‘stop production’ strike on October 22 in protest against the power shortage. Dr.S.K. Srinivsan, Chairman of Southern India Mills Association (SIMA) in a release pointed out that the decision the decision to stop production followed the announcement made by the Government of Tamil Nadu on restriction of power usage by the industries.

The strike was to demand implementation of HSD oil model, utilise around 3,500 mega watt idle capacity of generators available with the industry.Increasing the power cut from 40 to 50 per cent would make the textile industry throw several lakh people out of jobs. He expressed hope that the Government would enforce the power cut in all multinational companies which had been ensured uninterrupted power supply as per the MoUs and also Chennai which had been all along enjoying either uninterrupted power or the benefit of one to one-and-a-half hour power shut down as against up to ten hour power shut down in all other parts of Tamil Nadu.

If the power crisis situation was not resolved, Dr.Srinivasan had pointed out that the entire textile industry providing direct and indirect employment to almost 100 lakh people in the State, accounting for 60 per cent of yarn export, 60 per cent of the spinning capacity, consuming 110 lakh bales of cotton accounting one third of the textile size in the country would come to a halt. Dr.Srinivasan urged the Government to immediately announce the implementation of HSD oil model in the State to overcome the present crisis. He said that 4,000 meg captive generation capacity was lying idle. Dr.Srinivasan stated that the one day stoppage of production would result in Rs. 50 crores production loss to the spinning sector having over 2,000 units and Rs. 230 crores production loss to the entire textile industry in the State.

He added that the one day stoppage of production would result in Rs. 5 crore revenue loss for TNEB, Rs. 1.5 crore revenue loss to Tamil Nadu Government and over Rs. 1 crore loss to the Central Government. He said that if diesel model power generation was not given effect to the crisis would last for next three to four years. A release from Coimbatore District Small Scale Industries Association (CODISSIA) said that the solution to the power crisis would be only through encouraging the captive power generation making use of the 3,000 mw idle capacity available with the industries. Most of the industries were unable or unwilling to use this because it was not viable due to the high cost of fuel.

Cost per unit worked up to Rs 11 and TNEB was no buying power from independent power producers at Rs 10 or 11 and was supplied after accounting line losses. If the Government came forward to share the cost burden with the industries, the captive power generation could be encouraged. Effectively the cost would be the same as what was paid to independent power producers. Representatives of textile spinning mills and all kinds of manufacturing facilities would take part in a process at 10 a.m. on October 22 from VKK Menon Road and a memorandum would be handed over the Chief Engineer of TNEB and District Collector.

Industries bodies that will be taking part in the strike and rally would include Tamil Nadu Small and Tiny Industries Association, CODISSIA, Indian Chamber of Commerce and Industry, Southern India Engineering Manufacturers Association, Tamil Nadu Association of Cottage and Micro Enterprises, Tamil Nadu Electricity Consumers Association, South India Mills Association, South India Small Spinners Association, Indian Institute of Foundrymen, Coimbatore Wet Grinder Manufacturers Association, COSIEMWA, COSMAFAN, COIFOA, TAPMAA, KOPMA, IPMA, SIEA, ISMA, TMMSMA, CMMA, CDSPMTA and ISMAT.

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