After nearly a decade of the implementation of the Electricity Act 2003, the southern part of the country is being haunted by prolonged power crisis, Tamil Nadu being hit the worst. The recurring 12-14 hours of power cuts have now started affecting every conceivable industrial activity including the powerlooms and textile mills, with cottage, tiny and middle level industries being affected the most. Also, equally hurt are the continuous process industries such as yarn mills and textile mills which are forced to use diesel generators because of their high electricity requirements.
Following the massive de-industrialization over the past five years, in the southern districts of Tamil Nadu due to the power crisis, many companies have been forced to close down and potential investors have been scared away. Even as the Government has established IT parks in Madurai and other southern districts, none has fully taken off as the software majors prefers Chennai, primarily because of power supply.
The State Government cannot escape its share of blame as it has failed to complete the power generation projects that began a decade ago. Nine power projects were initiated by successive Governments in Tamil Nadu from 2001 to 2011, but to date none of them is helping to generate power. These projects are 1500 MW Vallur thermal power project near Chennai, 1500 MW joint venture in Tuticorin, 500 MW additional unit of the North Chennai thermal power station, 500 MW Kundah hydel generation project, 660 MW thermal power project at Ennore, 600 MW new unit at Mettur thermal power station, 1200 MW North Chennai thermal power station Stage 2, 1600 MW Udangudi thermal power project and 600 MW unit at Vallur.
Following the protests and hartals in the region, the Tamil Nadu Government has ensured the industry that they are working upon steps to make certain a minimum supply of four hours of continuous power supply to micro and small enterprises. Despite the fact that the industry has sought uninterrupted power supply for eight hours during the day, Tamil Nadu Chief Minister Jayalalithaa has promised a minimum of four hours of continuous power supply for small enterprises.
