Restriction on barrel sale of diesel hits SSIs

  • 25/08/2008

  • Hindu (New Delhi)

Restriction on barrel sale of diesel hits SSIs Shyam Ranganathan CHENNAI: The recent diesel shortage and the decision to restrict barrel sale by oil marketing companies in the city are having an adverse effect on small-scale industries, according to entrepreneurs. R. Namasivayam, who owns an aluminium die-casting plant, says that he has been working at only about 50 per cent capacity because of the non-availability of diesel. "I need about 200 litres of HSD a day on an average to make sure my plant runs at maximum capacity. Earlier, we used to stock some diesel, buying it in barrels for emergency. But in the last few days both private bunks and oil companies are refusing to give us diesel,' he complains. Widespread S. Seetharaman, chairman, Thirumudivakkam Industrial Estate Manufacturers' Association, says the problem is widespread, and has worsened over the last few days. His own plants (in the auto forge industry) need about 30 barrels per day, he says. This is because they have to run continuously all through the day for maximum efficiency. But government regulations mean that he does not get power during the peak hours between 6 a.m. and 9 a.m. and again between 6 p.m. and 9 p.m. In addition, he complains that he rarely gets the 440 V required for his machines, and frequently he is able to get voltages of only 340-350 V (after stepping down through a transformer). This makes HSD an essential commodity for his operations. "We do not want diesel for luxury. Power from the grid costs much less than the nearly Rs. 17 per unit through diesel generators. But we are forced to buy diesel to keep our operations going,' he says. In this scenario, he says that it is short-sighted to assume that HSD is only for the transport sector. He says the government should either correct the power situation or allow industrialists to get diesel supplies. When contacted, P. Selvam, Micro, Small and Medium Enterprises Department Secretary, said the issue had not been brought to his notice yet. He said suitable action would be taken soon.