India | Updated Jun 15, 2008 at 02:04pm IST

Strike at TN power plant continues

Divya Rajgopal, Raksha HegdeCNN-IBN

Chennai: Tamil Nadu might soon face a power crisis, due to an on-going conflict between the contract workers of Neyvelli Lignite Corporation and the Central Government.

Almost 2,500 workers have been arrested for laying siege to the company's corporate office.

The strike at government-owned power plant, Neyvelli Lignite Corporation, which began last week, does not seem to end.

The 13,000 contract workers say they want to be absorbed as permanent workers in the plant. They have also demanded that their minimum wage be raised on par with the permanent workers from the current Rs 4,500 to Rs 10,000 per month.

Talks have broken down between the management at Neyvelli Lignite and the All India Trade Union Congress. However, Chief minister Karunanidhi has sought the intervention of the Prime Minister to resolve the matter.

“The management has already discussed with them two or three demands. They are not happy. That's why they are going on strike and I think they will discuss with the ministers in Delhi and finalise everything and we hope that they withdraw their strike soon,” says Minister for Power, Tamil Nadu, Arcot Veeraswamy.

For Tamil Nadu and its neighboring states, the Neyveli power plant is an important source of energy.

Meanwhile, the strike has affected almost 70 per cent of Neyvelli Lignite's Power production and it is believed that the production of the plant has reduced to 650 mws. It is clear that a reduction in capacity can result in a significant power crisis in the state.

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