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Sep 25, 2012 at 10:23am IST

Tamil Nadu: Power shortage hits the hospitality industry

Chennai: There is a glimmer of hope for power authorities in Tamil Nadu after the Cabinet approved a bailout package for the sector on Monday evening. From a 2,000 mega watt crunch a year ago, the state now suffers a deficit of almost 4,000 mega watt.

The electricity crunch in Tamil Nadu that hit homes and industries has now hit the hospitality sector. Hotels and restaurants have been asked to use generators in the evenings and maintain air-conditioning at a fixed temperature to conserve power.

The situation is not going well with those in the hospitality industry. Ankush Sharma, General Manager, Courtyard Marriott, said, "It is more expensive for a hotel or any industry to actually generate power with the use of diesel. Diesel prices have gone up and especially if it happens in the mid-year period, it becomes more difficult because we have a set budget and this shoots it way beyond that."

The bailout from the Central government notwithstanding, the debt-ridden Tamil Nadu Electricity Board won't be able to manage the shortfall. In Chennai, there are one-hour power cuts every day, but in other cities, towns and villages, power cuts are as long as 14 hours a day.

No one is celebrating, except makers and vendors of generators. Consumer Electronics Store Viveks CEO BA Srinivasa said, "The demand in my estimation is almost 100 times of what it was. Already there is a back log from our customers side by registration or advance payment."

The Tamil Nadu government has been periodically allocating several thousand crores to the debt-ridden state electricity board and is also focusing on fast tracking power projects in order to make up for the 4,000 MW shortfall. But with the demand constantly increasing, it's a long way to go before the power situation eases in the state.Chennai: There is a glimmer of hope for power authorities in Tamil Nadu after the Cabinet approved a bailout package for the sector on Monday evening. From a 2,000 mega watt crunch a year ago, the state now suffers a deficit of almost 4,000 mega watt.

The electricity crunch in Tamil Nadu that hit homes and industries has now hit the hospitality sector. Hotels and restaurants have been asked to use generators in the evenings and maintain air-conditioning at a fixed temperature to conserve power.

The situation is not going well with those in the hospitality industry. Ankush Sharma, General Manager, Courtyard Marriott, said, "It is more expensive for a hotel or any industry to actually generate power with the use of diesel. Diesel prices have gone up and especially if it happens in the mid-year period, it becomes more difficult because we have a set budget and this shoots it way beyond that."

The bailout from the Central government notwithstanding, the debt-ridden Tamil Nadu Electricity Board won't be able to manage the shortfall. In Chennai, there are one-hour power cuts every day, but in other cities, towns and villages, power cuts are as long as 14 hours a day.

No one is celebrating, except makers and vendors of generators. Consumer Electronics Store Viveks CEO BA Srinivasa said, "The demand in my estimation is almost 100 times of what it was. Already there is a back log from our customers side by registration or advance payment."

The Tamil Nadu government has been periodically allocating several thousand crores to the debt-ridden state electricity board and is also focusing on fast tracking power projects in order to make up for the 4,000 MW shortfall. But with the demand constantly increasing, it's a long way to go before the power situation eases in the state.

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