Ad Here  
April
May
June
July
August
September
 
 
There was flood of milk. Reason: no milk commissioner! Tribute The ‘Jayanthi Tax.’ Tribute – M V Murugappan S V Raju – a ‘good’ true liberal Sweet news for TN sugar mills Demise of a media baron... Wanted: a second airport for Chennai Breaththrough in malaria control Insurance companies bleeding, yet no decision on increasing FDI limit! Tribute – Manikam Ramaswami Convulsions in The Hindu A rich pool of talent not utilised…. New IT products of Ramco in the pipeline… Music happens Marketing expert Balagopal is no more Delhi is distant The balancing act EVM is tamper-proof Readers' Mail Roaring Ro-Ro facility Auto components surge… The Jan Dhan bonanza Liberal imports idling indigenous capacities R Sridhar steps down as CEO of Shriram Capital A welcome initiative by the judiciary Remembering Indira Sivasailam... F C Kohli - his concerns all embracing Naidu will soon build a new Hyderabad An informal presentation - analytical, forward locking... Measuring roof tops in terms of KW/MW Sri Lanka votes for change Return to king coal for urea... The star of Spencers is no more Padma Bhushan for A Ramakrishna Computation of GDP – conundrums continue Godspeed, Chief Minister JJ The brown list of Venkitaramanan Put expensive assets created to use... Tatas moving out of urea production... A yen for wastage… Tihar, Puzhal not different from Parappana Agrahara Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Strengthen the base... All eyes on Sankara Nethralaya CII projects higher growth… Welcome thrust on trade in Modi’s foreign visits... Telangana in top gear… Adapt Vajpayee dinner diplomacy Gas is the way forward Solar, solar everywhere … Nuclear power at the nucleus For whom the bell tolls? Infrastructure funding – lessons learnt West Bengal: mindless malignancy The power-full Hindujas He saved millions from starvation... A Grand Finale for SN’s MS centenary at the US… The why of tax incentives Poor quality of university VCs Fortune 500 review Small units prefers to remain small... Things happen by accident and not by design... Tough task taking states together Pharma – overdose of copying SoA @ 80 Editor's Notes Kulandai was a giant More heat than light Silver Years of Madras Musings Come elections, come advertisements... Welcome changes that testify to Jayalalithaa’s return to health Kinetic Karnataka Reliance’s TV – 18 ready to launch Tamil News Channel B H Kothari - a tribute Lesson from Chandrababu Naidu CRS, a jewel among managers, is no more. The rise and fall of Annamalai University Modi storms Silicon Valley Preserving for the future Bihar – Nitish Kumar adopts the Lalu model China invests in India Revving up the manufacturing sector Mersal magnified Delhi returns to BJP Another Indian music maestro at the UN He continues the focus on social amelioration Boy, can you beat these? Tribute – UCAL Selvan… Secularism and anti-Hinduism The Gulf aviation boom Diamond jubilee of Egmore Samskrt School Cutting the nose to spite the face Of course, Gujarat is vibrant Revive development banks... Rahman at CIC A proud Madrasi …and of a popular trade leader The Swadeshi Trump Parliament in paralysis... Airlines in India: cost and space Vibrant Gujarat Why land prices zoom in TN? The nuclear option A glass full of corruption Air Asia India will set new benchmarks for budget travel PPP mode for upgrading Corporation Hospitals Plummeting profits of PSBs Maximising the micro pricing … An inexplicable neglect An enemy’s enemy is a friend Editor's Says Whistle-Stop Tour of Raghuram Rajan Multi-faceted Venkat GNS - 100: our first subscriber The sea- saw battle continues... GM Technology at last! When nations steal growth from one another… Protest masters... Delhi Chalo... Don’t seem to feel the pulse… Quality education through the PPP mode When the President was rendered homeless… Alexa – Talking Wikipedia A think tank for Chennai The ‘Ayyo-yes’ is no more No Maha Koottani in TN... Should we change the official year? Welcome GST EEC at the National Media Centre Delhi is distant… Muffled voices for merit… How Air-India loses customs... Inflation: are we emulating Argentina and Brazil? Online not in line with brick and mortar businesses... No mega rail project for Tamil Nadu Tatas moving out of urea production... Waning interest in public discussions… The rise and rise of KCP Scientists urged to take up farmer-oriented research Welcome focus on core competence Colour-Chem’s colourful KRVS More Shakti to resource mobilisation... Noble nonagenarians... Modi and the lady Mu Sigma – is no more A Grand Finale for SN’s MS centenary at the US… Engineering seats go abegging Gay abandon in pricing Road development slows down Paytm karo... This scant respect for Law Cement prices continue to rise… TIAM turns a full cycle Adharma of opposition politics Moily’s bold thrust A C Muthiah – his munificent bequeaths to science Where is Rajaji? Which side are you, Montek? Focus on quality of power - its only around 170-180V Align crops to agro climate endowments… A friendly business group Robber barons everywhere Polls and promises Kudos to NDTV... Shaming of Tamils by Tamil farmers at Delhi L&T: focus on infrastructure and more infrastructure… Recognition to role of NBFCs.... Contrarian cousins Banning booze... Not just in-laws (and outlaws); they’ve renowned academics at the helm! Five star activism stalls development activity Funding the un-funded Fall in crude prices help in oil sector reform Fortune for Indian Airlines IPL type auction for VCs? PC’s preference for professionals A professional at the helm of IRDA... Quality silica from Neyveli Intellectual of rare qualities Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Increasing non co-operation of state leaders Lalu’s envy, India’s pride CIPET hqrs to stay at Guindy – for the present? Discoms deserve better… Where a state respects its litterateurs… TGS- The king storyteller Haul over the coal TN accounts for the largest recruits by the IT sector Building loyalty through the stomach Medical costs hit the roof... Build close rapport with business leaders When online building permits work…. The few handicaps... No engine for this car Make standards certification mandatory... WTO Meet: resolved to meet again ONGC at KG Basin Dr C Rangarajan returns to Chennai MHC should not return to its old indisciplined ways Solar thermal shines… Eternal support for capitalisation of PS banks Poor representation for Kerala and TN in Cabinet Valli, they are more marginalised Limit foreign borrowings to hi-tech, export potential projects... Making ‘my Amaravati’... to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Shanti and Sadhana through Music Fuel for thought Naidu’s return augurs well for Seemandhra L&T- the specialty of special purpose vehicles Russi Mody – a tribute For whom the MIDS bell tolls? Streamlining mandatory third party cover Odisha: spectacular win by Naveen Patnaik Rs.1600 crore paper board plant of TNPL TN – agglomerate land holdings without alienating ownership More Shakthi to Das’ elbow Wise Presidents TELANGANA at last…BUT Sweeter prospects for sugar Cleaning Ganga – relocate tanneries and install electric crematoria Permanent secretariat for TN GIM IAS invades NDDB... Land reclamation from sea appears cheaper! TN-leverage strength of BHEL, NLC... Shale gas and its shallow future S Ramanathan – a versatile musician, musicologist Like Hinduism: many paths to reach God... Excel Generators provide the vital back-up Tax agriculture Shipping woes of Chennai companies CSR and CMI: promise of another Srinivasan Ramanujan... Why this malaise in medical education? When small is no larger beautiful.. Towards speedy justice A more liberated TN… London, London Narayan Bihar elections - the Rajaji formula worked The Ports’ Pasha expands into Tamil Nadu When TN politicians can emulate Kerala's IPL - no surprise this scam When Ratan Tata visited SRM More tributes to GR
 
TN-leverage strength of BHEL, NLC...

I had referred to this issue earlier: the reluctance of the Dravidian parties to leverage the strengths of large flourishing public sector enterprises in the state. These have been, by and large, brought about by the Congress government in power up to 1967- like the Integral Coach Factory, Neyveli Lignite Corporation, Bharat Heavy Electricals-Tiruchi, Salem Steel Plant – SAIL (though it was set up in 1970 it was sanctioned at the initiative of Indira Gandhi) and Madras Refineries (now the Chennai Petroleum Corporation). These have been flourishing with large land and infrastructure that would lend for easy expansion. BHEL-T, for instance, produces goods worth around Rs 17,000 crore on consistent, profitable terms. NLC has been among the highly profitable PSUs for three decades contributing significantly to the economy of the state through royalty on the lignite mined and supply of cheap power for five decades.

The adversarial relations of the Dravidian parties for the greater part of their reign resulted in the loss of opportunity to leverage the substantial strengths of these PSUs. The ministers of the Congress party at the Centre often used this more effectively: N D Tiwari got an adjunct to BHEL-T in Rudrapur, his home state in U.P. More recently,   Sriprakash Jaiswal as Coal Minister got NLC expand into his home state of UP on a Rs 6000 crore power project. Earlier, NLC was taken to Rajasthan for opening up lignite mines.

It is not as if only Congress leaders took advantage of such leverage: Chandrababu Naidu while lending support to the NDA 1, got BHEL invest in 2x1000 MW power plants at Simhadri in A.P. The entire power is used by AP. The DMK, which was part of the Union government continuously from1999 up to 2013 did not exert overmuch to work on such a route to leverage on the strengths of flourishing PSUs in the state. At the height of the power shortage in 2006-07 the party announced a spate of large new projects. In fact then Electricity Minister Arcot Veerasamy painted a rosy picture: that after five years Tamil Nadu will be hugely surplus in power earning massive revenues by selling power.

One of the projects was a 2x660 MW power plant at Udangudi to be built jointly by BHEL and TANGEDCO. There was also an ultra mega power project of 4000 MW announced for Tamil Nadu at Cheyyar. Despite the power wielded by DMK as part of the UPA, precious little work was done either in getting the needed environment clearances, coal linkages or on financial closures. Ditto for Cheyyar. BHEL, flush with money and was willing to take care of substantial portion of funding, supplying the equipment, constructing the project and managing it, was helpless with the utter unconcern of the state leadership.

Look at the irony: Jagatrakshagan, who was catapulted as a member of the Lok Sabha soon after crossing over from AIADMK to DMK and further getting appointed as minister in UPA II, was more keen to float a company at Puduchery to get an allotment of a coal mine; the other, politically-savvy B G Raghupathy was active and successful in getting orders from TANGEDCO (Mettur thermal) for the supply of not proven and cheaper Chinese power equipment. (These continue to fail in delivering the promised output).

The TN government cancelled the order to BHEL for Udangudi in 2012. Three years after re-tendering and re-re-tendering, the project is still in a limbo. The Simhadri plant, in contrast, has been operating to a high plant load factor and has already earned back  the investments made.

Also remember the havoc caused by power shortages in the state for few years now. The neglect of investments for over two decades on creating fresh capacity,  for rendering TANGEDCO sick  by purchase of power at high cost in large volumes and through massive subsidies on power not compensated fully and in time for TANGEDCO are costing the state dearly.

 

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com