In the current scenario, power shortage has been a major hindrance to the industrial growth in India, with Tamil Nadu being one of the most badly hit states. This situation is worsening day by day in the state. According to the article published in The Times of India, dated September 5, 2013 the power deficit would tower to 34.1% this year, which was 17.5% last year.
The power shortage countered by the industries amounts to 30 hours a week. As a result the industries are loosing revenue. Recently FICCI conducted a study on “Lack of Affordable and Quality Power: Shackling India’s Growth Story.” The study depicted that the companies are losing their productivity and as a result running into huge losses due to power shortage. It also said that “Firms are facing cost escalation, losses in revenue, increased consumption of fuel, increased investment in captive facilities, higher inventory costs and loss in competitiveness”owing to power shortage. The report of the respective study is attached below.
However, the micro, small and medium enterprises (MSMSE) are the worst sufferers. The survey conducted by the union ministry of micro, small and medium enterprises reported that the productivity of the state has collapsed to 600 crores per day from last year’s 1500 crores. Despite the fact that Tamil Nadu has the highest number of micro, small and medium industries and the largest per capita investment in MSME, it is ranked seventh in terms of productivity of the same.
Industries have now realized the importance of alternative energy and the energy security provided by natural gas. Certain associations such as Coimbatore Sidco Industrial Estate Manufacturers Welfare Association (COSIEMA) and Tamil Nadu Association of Cottage and Tiny Enterprises have shown their support to GAIL’s project in the state. A positive message came from the central minister Mr. Sudharshan Naachiyappan himself stating the project laid by GAIL as the key solution to the energy crisis and a catalyst to the development of Tamil Nadu.