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Load shedding affects car manufacturers
The onset of summer every year brings with it the woes of load shedding. It has hit the manufacturing sector and many times forcing them to shut down operations resulting in losses worth several crore.
The problem is acute in Maharashtra, where several car manufactures have their facilities there. Car manufactures like Tata Motors, General Motors, Volkswagen, Mahindra and Mahindra and others are based in Maharashtra. The power supply problem has been witnessed in the Pimpri-Chinchwad-Bhosari and Chakan belt, where Tata Motors and Bajaj Auto facilities are located. Several automotive suppliers and OEM manufacturers based in the same belt would also be affected.
The state government has reported a shortage of 4,500 MW in this summer. They are planning load shedding for 3-6 hours each day. Further, a government regulation may force the industries to adopt a five-day production week instead of the existing six day week if the shortfall exceeds 4,500 MW.
These plans have adversely affected operations of Tata Motors and Bajaj Auto. Other facilities owned by different car manufacturers, located near Pune are also vulnerable. The situation has forced many manufacturers to look for alternative source of energy. It was in Pune plant where Tata Motors manufactured the famous Tata Nano car, dubbed the world’s cheapest car. The company manufactures medium and light commercial vehicles and passenger cars like Indica, Indigo and Indigo Marina at its Pune plant.
Tata Motors has already embarked on steps to avoid production disruptions at its Pune plant. Tata Motors along with Thermax Limited generated its own power thereby freeing the common grid of its requirement.
The proposal for such Tata’s model of captive power generation was forwarded by the Confederation of Indian Industries (CII). Under this proposal companies buy millions of units of power directly from outside suppliers, who have been given a partial access to Pune city. Thanks to this plan Pune city faced no power problems during last summer.
US car major General Motors India is also under pressure due a different tussle with the Maharashtra State Electricity Transmission Company (MSETC). The company is in the process of establishing a new facility at Talegaon near Pune. The company had requested the MSETC for supply of 10MV A of power but has been provided with only 10MV A. A company official said that they have been unable to meet the requirement due to high demand.
Commenting about the power struggle, Director and Vice-President of Corporate Affairs of General Motors, Mr P Balendran said that the company’s plans to commence trial production was delayed but has now been schedule to start soon. The new plant at Talegaon wills kick-start trail production in a couple of week during April month, which is three months ahead of schedule. The government on its part has been unable to erect transmission tower that could supply adequate amount of power through the 40 transmission towers.
Even as General Motors train its guns to capture 10 % of Indian car market, it has set tight deadlines and high production targets for this year. Currently, the company has only 3 % market share in Indian car market.
Whether load shedding will pull down plans of car manufacturers who have already set high targets for domestic and exports market, will have to been seen. However, the fact remains that the car manufacturers will have to resort to some immediate alternative measures to overcome the problem of power supply.
The car industry leader based in Pune are now eagerly awaiting a decision from the Maharashtra Electricity Regulatory Commission (MERC) over a new proposal submitted by them to minimize their dependence on common grid and bypass load shedding problems altogether. The decision will give a new breather to Pune City and Maharashtra which is one of the most industrialized states in India.
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