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