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