SIMA urges CM to reduce power tariff

: Southern India Mills Association today urged Tamil Nadu Chief Minister Jayalalithaa to reduce power tariff, considering the steep reduction in fuels for power generation, particularly coal, furnace oil and HSD oil
SIMA chairman M Senthilkumar in a representation to the CM, said that after a long battle, Tamil Nadu has now become a power surplus state and the power tariff available in the open market was quite competitive.
He said Tamil Nadu was facing acute power shortage since 2008 and so power cost was exorbitant in the absence of power grid. The textile industry, a power intensive sector,has been undergoing severe financial stress due to high cost power, he said.

The power subsidy, interest subsidy and various incentives offered by all major cotton growing states like Gujarat, Maharashtra, Andhra Pradesh, Punjab and Rajasthan added fuel to the situation and brought the new investments to a grinding halt.
Senthilkumar said that the coal price per tonne had come down to Rs 3,591 from Rs 5,399 which was prevalent in 2013 and the furnace oil price excluding VAT also reduced to Rs 17.81 per litre from the level of Rs 39.55.
Similarly, the HSD oil price excluding VAT has tuched to Rs 36.25 per litre from Rs 51.70 per litre that in 2013.

Textile industry deserves to have a separate power tariff, which is essential for spinning mills to remain competitive when all other States were offering huge incentives for the he said
He urged the CM to reduce power tariff for HT consumers and also consider fixing a separate power tariff for the ailing industry to revive it from the current recession and remain competitive in the globalized environment.
The targeted investments of Global Investors Meet 2015 would become a reality if the power tariff is reduced substantially considering the sharp fall in fuel prices and also availability of cheaper power under open access, he said.