Looms refuse to pay, Tangedco faces Rs 13 crore due

On September 10, 2022, TANGEDCO announced hike in tariff in all categories. Under 3A-2 category for power looms, the tariff was increased from Rs 4.50 per unit to Rs 6.40.
TANGEDCO (Representational Image)  Photo | Express.
TANGEDCO (Representational Image) Photo | Express.

TIRUPPUR:  Outstanding TANGEDCO power dues ballooned to Rs 13.25 crore as 2,870 power loom weavers in Tiruppur and Coimbatore have been refusing to pay their electricity bill for the last nine months in protest against the hike in power tariff. According to sources, officials are reluctant to disconnect power supply to the units as it could stoke widespread protests.

On September 10, 2022, TANGEDCO announced hike in tariff in all categories. Under 3A-2 category for power looms, the tariff was increased from Rs 4.50 per unit to Rs 6.40. As a result, power loom weavers refused to pay power bills. After several rounds of talks with officials of TANGEDCO and minister for electricity, it was decided to reduce the power tariff. On March 3, 2023, a reduction of `1.10 was announced. Even this was not accepted by a section of weavers.  

According to sources, 490 weavers in Palladam (Tiruppur) and 2,400 weavers in Somanur (Coimbatore) did not pay bills and the arrears has run up to Rs 13.25 crore from September 2022 to June 2023. Speaking to TNIE, Secretary of the Tiruppur- Coimbatore Power Loom Weavers Association M Balasubramanian said, “The government is very harsh on power loom sector.

Officials do not understand that there are problems specific to Tiruppur and Coimbatore. Looms in Karur, Salem and some southern districts consume 2,000-3,000 units every two months, whereas those in Tiruppur and Coimbatore consume around 6,000-8,000 units and owners receive bills up to Rs 30,000- Rs 50,000. Despite the reduction, every loom has accumulated arrears of Rs 1.5-Rs 2.5 lakh. This is a big jolt and so we refused to pay.”

Secretary of Palladam power loom weavers association R Velusamy said, “We did not pay bills in the last 10 months as the arrears are huge. We seek more time and six instalments’ settlement. But, no individual and itemised notices for arrears, instalments and waiver of interest on arrears has been sent from TANGEDCO. When these notices are issued, we will clear the dues.”

When contacted, a  senior official in TANGEDCO (Coimbatore Zone) said, “A section of power loom weavers is adamant and did not pay bills so far. If we disconnect power supply to the units, it could cause social problems. Officials from Chennai have given us oral instructions to slow down. Besides, these power loom weavers seek waiver of interest of the dues, which amounts to Rs 2.50 crore. We have sent the proposal to Chennai.”

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