Chennai IT industry hit by diesel shortage

ORDER OF THE DAY: Power out, petrol not available and now it is diesel that's run dry.

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Chennai The city's cup of woes on the power-supply front may overflow with another problem on hand. After petrol being in short supply, it is now the turn of diesel to disappear from fuel outlets.

And the most affected by this shortage is the IT sector, which needs barrels and barrels of the black gold.

Chennai now has a ban on selling diesel in barrels.

Oil marketing companies have reportedly approached the Tamil Nadu government to assist them curb bulk purchase of diesel in barrels.

Many companies from the non-transport sector were using the subsidized fuel for power generator sets.

Managing Director of Zylog Systems Limited, Ram Sesharathnam said that his company, a global services provider delivering technology-driven business solutions, relies on 1500 litres (or 750 barrels) of diesel to run its generators per day.

But now, the company has been forced to reinvent its working and even suspend the bus service for employees to save fuel for its generators.

"This is going to affect our daily operations. When there's a shortage of power, obviously generators become vulnerable at that time. We are looking for some forums to present ourselves to the government to look for a possible solution," said Sesharathnam.

Signboards telling that the fuel outlet has run out of diesel have become regularity of late.

The oil companies say that there is a lapse on part of the retail outlets as well.

Dispensing petrol and diesel into cans, barrels or any other container other than a tank fitted to a vehicle is illegal and it has to be enforced by the State government.

But the petrol pump dealers have a different story to tell. They say that instructions on the issue have not been concrete and direct.

President, Tamil Nadu Petroleum Dealers Association M Kannan said, “There's nothing formal about what they say. Everything is always oral. The company gives us instructions to not sell in barrels. Dealers are in no way responsible for this short supply or the ban."

The IT industry already reeling under the power cuts now hopes for some interference by the government to lift this ban so that they can carry on their operations effectively.