Frequent power disruption over coal shortage in TN now affecting MSMEs

With Tamil Nadu facing unprecedented power disruptions, primarily due to the shortage of coal and other distribution issues, the functioning of small and medium companies in the state are affected.

power
Power supply deficit largely affecting TN industrial sector
IANS Chennai
2 min read Last Updated : Apr 25 2022 | 1:08 PM IST

With Tamil Nadu facing unprecedented power disruptions, primarily due to the shortage of coal and other distribution issues, the functioning of small and medium companies in the state has been affected.

The unit owners said that the regular disruptions in the past few days are a cause of worry as the use of generators to substitute the power disruption has turned into a costly affair, thanks to the high cost of diesel.

Industrial units in Chennai, Coimbatore, Salem, and Tiruchi are facing issues due to the frequent power failures that take place four to five times a day with 20 to 30 minutes duration.

A small industrial unit manufacturing company that is specialising in the production of brake liners, while speaking to IANS, said, "The industrial climate is going for a toss if the power disruptions continue. The Chief Minister has already communicated to the Prime Minister regarding the coal shortage in Tamil Nadu and hopes the issue is resolved. We are facing a 10 per cent shortage in our production per day and this will lead to losses for industry that is slowly coming up after two years of pandemic followed by economic woes."

Many of the small industrial units have said that they are not able to use generators as the cost of diesel has gone up and the costing has become more than 30 per cent than that was earlier.

An industrial unit at Coimbatore industrial park which specializes in tool-making is also facing the same issue. M. Karupuvelan, a trained machinist who has put a unit with the support from the Small Industrial Development Bank of India (SIDBI) told IANS, "Things were doing good until pandemic struck. After two years of closure and default on loans, we were slowly coming back on track and the continuous power disruptions are now taking their toll on our production. We are into precision engineering and once the power is gone, the flow is lost. Hence we have to start afresh creating major worries. I am not able to afford using a generator to substitute the power shortage as prices of diesel have skyrocketed."

Frequent power disruption has become a major cause of worry in Tamil Nadu. The government needs to take measures to rectify the situation and help the small and medium industries that employ a huge workforce will suffer, said unit holders.

--IANS

aal/dpb

 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Tamil NaduMSME sectorCoal shortage

First Published: Apr 25 2022 | 1:08 PM IST

Next Story