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MAR 10 2016

Kutch industries suffer GETCO delicensing on power underdrawal

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 10th MAR 2016

At least 175 industrial units of Kutch district, which have been drawing powerfrom extra high tension (EHT) lines of the Gujarat Energy Transmission Corporation Limited (GETCO), are staring at closure, owing to a recent order passed by the discom. 

"The industrial units have been drawing power from 66 kVA transmission stations ofGETCO through the state load despatch centre (SLDC), located in Vadodara," Nimesh Phadke, Managing Director of Federation of Kutch Industries Associations (FOKIA) told PTI.

"However, the SLDC, in an order dated March 2, has cancelled the license of 175 industries to procure power at concessional rate over 'underdrawal' by them, stating that they need to consume at least 1 MW of power," he said. 

FOKIA is an umbrella body of large, medium and small industries of the Kutch region, established in 2000. 

The SLDC ordered the cancellation of license of Open Access of power, which has cast a shadow on the future of thousands of workers, Phadke said. 

"FOKIA, in its letter dated March 5, has sought the intervention of Roopwant Singh, Secretary of Gujarat Electricity Regulatory Commission (GERC), the state's regulatory body on power-related issues, and requested that the order be withdrawn," he said. 

Citing financial losses, FOKIA, whose members are SLDC consumers, has contested the legality of the order, and termed it "arbitrary". 

The industries have undergone a loss to the tune of Rs 135 crore till date, as they are compelled to keep operations going to meet their countrywide demand, he said. 

"Some of the distribution licensees of GETCO and the SLDC have been flouting regulations of the GERC with regard to the grant of Short Term Open Access," he alleged. 

Citing issues such as breakdown of machinery among other reasons, Phadke said it is unrealistic to expect constancy in power drawal by the consumers. 

He said the GERC has put in place penalty under its Intra-State Open Access Regulations, 2011 to address such problems. 

The federation has sought appropriate action to resolve the issue at the earliest.


Gujarat Gujarat Energy Transmission Corporation Ltd Open Access Energy Electricity Regulatory Commission Gujarat Electricity Regulatory Commission SLDC Power Electricity

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