Power Crisis Handicaped Coimbatore industries
The Tamil Nadu government’s decision to restrict power supply to the industry has literally pushed the manufacturing units in the Coimbatore region to the brink. The multi-industrial centre of Tamil Nadu, is now waging a battle for survival having very little electricity to run the factories. With grid-connected power available only for 20 hours per day (even that is not regular) and a 40% cut in permitted consumption, most of the industries in the large, medium, small and micro sectors operate only at around 40% of capacity utilisation leading to drastic cut in production and widespread lay-offs.A large number of small and tiny units doing job works have already downed their shutters. “Coimbatore, the production centre of more than 50% of the country’s yarn, fabrics, knitwear, textile machinery, pumps, foundry products and various engineering goods, is facing a 50% to 70% power shortage. In most sectors production have halved hitting sales, exports and debt servicing. Over 10 million people have lost their livelihood either completely or partially”, a senior industry association representative told FE from Coimbatore.
The industry bodies lament that none of their suggestions for easing the power crisis, including subsidising captive generation using diesel gensets, have been taken seriously by the government and the crisis continues with no end in sight. They put the blame squarely on the doors of the government saying that the myopic energy policy was the major reason for their current plight.
Spinning mills, the hub of industrial operations in the district, is operating at less than half their capacity. According to KV Srinivasan, chairman of Southern India Mills’ Association (SIMA), the Tamil Nadu textile industry, that employs about 10 million people directly and indirectly, consumes 110 lakh bales of cotton, accounting for 50% of the spinning capacity and 60% of yarn exports, is inching towards a complete closure.
Manikam Ramaswamy, head of the Tamil Nadu State Council of the Confederation of Indian Industry (CII) said the running of the mills at very low capacity would lead to multifarious problems including repayment of loans to the banks and other debt servicing. R Kuppusamy, former president of the South India Small Spinners Association, representing over 650 mills, and employing over a lakh of workers, said owing to power cut production has come down to less than 40% of the capacity and workers were employed for four or five days a week.
