The industry is literally powerless in Tamil Nadu with the state electricity board (SEB) sunk in debt. With the state falling short of 4000 MW of power, the situation is going from bad to worse, reports CNBC-TV18's Swathi Narayanan.
On September 5, 2011, J Jayalalithaa, the chief minister of Tamil Nadu assured that her government is aware of this issue and they are taking steps on a war footing to improve the power situation. But six months down the line, the CM seems to be powerless in improving the situation.
The demand for power in Tamil Nadu is 11,500-12,500 MW, while the supply is only 8500 MW. That's a deficit of 3000-4000 MW.
The SEB reeling under a debt of over Rs 50,000 crore has been unable to help.
This essentially means that industrial units in Tamil Nadu that have already been facing prolonged power cuts now will have to brace themselves for more. According to the TNSEB, industrial and commercial consumers will face up to 40% higher power cuts in the coming months. Industrial units located outside Chennai are already facing power cuts for up to 8-10 hours in a day. Besides this, all industries will be subjected to a one-day power holiday every week from March 1 onwards.
Obviously, none of this is good for business.
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