Wednesday, February 5, 2014

Solution to Power Shortage in Tamil Nadu

In the past two decades or so there has been tremendous increase in the demand for power in Tamil Nadu. Due to the efforts taken by the present government under the dynamic leadership of Chief Minister Selvi J.Jayalalithaa, the State has been able to tide over power crisis to a larger extent, despite the uncooperative attitude of the Central Government. The rise in demand for power is due to various factors. Tamil Nadu has been embarking on ambitious plan of rapid industrialisation and economic development, which depends to a larger extent on the supply and availability of electricity. Tamilnadu now has a widely diversified base of industry and an increased domestic production of a wide range of goods and services. Many manufacturing companies have come up in the state, especially in Chennai, Coimbatore, Thiruvallur, Kanchipuram, Salem, Thirupattur and Trichy districts, which raised the demand for electricity enormously. Moreover, thousands of Medium, Small and Micro enterprises have come up all over the state thereby causing substantial rise in demand. Recently many multinational companies have chosen Tamilnadu for establishing, especially Chennai and its surroundings for establishing manufacturing and assembling units besides for locating their offices that has also led to huge increase in demand for power. Moreover, Chennai has emerged as one of the largest destinations for IT as well as IT enabled industries, which require huge quantity of uninterrupted supply of power. There has been large increase in demand for electricity due to rapid growth of commercial establishments, particularly in Chennai and other big cities. Recently, the state has witnessed the establishment of so many commercial complexes, shopping malls, departmental stores, hyper stores, which use vast quantity of electricity for lighting and air-conditioning purposes. Similarly, hundreds of thousands of shops and other establishments in wholesale and retail trading has come up all over the state. Likewise there has been phenomenal increase in the use of electricity for domestic purposes. Recent data show that there is growing domestic use of electricity due to accessibility to more and modern domestic appliances and gadgets such fans, air conditioners, air coolers, pump sets, mixer-grinders, wet-grinders, iron boxes, washing machines, TVs, stereo sets, cell phones and so on. It has also resulted in enormous increase in demand for electricity in the state. Moreover, the demand for power for agricultural purpose also has shown tremendous increase. As a result, Tamil Nadu has been often witnessing shortage in the supply of power.
Nevertheless, the Tamil Nadu government under the dynamic leadership of Chief Minister Selvi J.Jayalalithaa has been taking   very serious efforts to augment power supply and thereby bridge demand supply gap. There is marked improvement in power supply and it is reported that there will be an end to power cut by the middle of 2014. It has to be borne in mind that in 2004-05, Tamil Nadu was one of the few Indian States with surplus electricity generation capacity, enabling the electricity authority to sell it to States of Andhra Pradesh and Karnataka. But in 2011, the situation was completely different and power cut caused untold sufferings to the people. During 2001-2006 a total of 2500 MW was added to the state grid.  But in the past few years, Tamil Nadu has been facing been facing acute shortage of power supply. The demand for electricity climbed steeply and reached 11,000 to 11,500 MW in 2011. But no worthwhile efforts were made during 2006-11 to augment power generation capacity.  For instance, during the period from 2005-06 to 2010-11, a generation capacity of mere 206 MW has been added to the grid.  But during 2011-13, a capacity of 2500 MW has been added to the State grid. Moreover, as a measure of caution the government has also entered into power purchase agreements with companies in Chhattisgarh, Odisha, Jharkhand and Maharashtra for provision of 2,158 MW, besides small power producers in the state.
Moreover, recently, the Tamil Nadu Chief Minister has assured that soon Tamil Nadu will become an electricity surplus state. Taking into account the spate of schemes being implemented to augment power generation in the State, in all possibility Tamil Nadu will become a power surplus state by the end of 2014.  Taking into consideration a long perspective on the power front, according to the Vision Tamil Nadu 2023 document, Tamil Nadu will add 30000 MW of electricity by 2023. The estimated total investment for achieving the target is Rs. 4.5 lakh crores, out of the total investment of Rs.15 lakh crores in infrastructure development during the Vision period. Investment for new capacity addition for Tamil Nadu located within the State or elsewhere, will account for the bulk of the investments (Rs.2.8 lakh crores). As per the prediction made in the Vision document, in the long run, “Tamil Nadu will have sufficient power generation capacity that is owned or secured under long term contracts that becomes the bedrock of an efficient and competitive economy.”

The Times of India, February 4,2014

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