Harnessing Clean Energy collectively: A case study of TEKIC<
Ms. Smriti Jain, Manager, Foundation for MSME Clusters
Tackling climate change and sustaining require improved design, deployment of innovative clean technologies by MSMEs. Clean energy refers to the process of generating power with no air pollution or toxic byproducts in the production process. Enabling clean and renewable energy requires collective effort of human as well financial resources for getting benefits of such technology.
Tirupur Export Knitwear Industrial Complex (TEKIC) was established in 1999 as a Society to promote a private industrial complex, the first private industrial estate to motivate entrepreneurs to set up manufacturing facilities in the complex and reduce congestion in the town. The major objective of TEKIC was
- To make available clean and renewable energy to members
- To reduce the cost of power by using renewable energy effectively
Therefore, the office bearers of TEKIC decided to establish wind mills to provide uninterrupted, clean and cheap power supply to members units.
In order to fulfill its objective, the following activities were involved
- Land procurement: In 1999, TEKIC procured 100 acres of land, 8 kms away from the town and established the complex with state-of-art infrastructure facilities. The complex has provided built-in industrial sheds for the 189 members which provided employment to about 10,000 workers.
- Installing renewable energy: In 2003, TEKIC installed 8 wind mills of 0.50 MW each at a suitable location in Thirunelveli district in Tamil Nadu where wind velocity was good throughout the year to generate 4 MW to meet around 40% of power requirements of members.
- Regulatory approval: Steps were initiated to obtain permission from Tamil Nadu Electricity Board (TNEB) for wheeling the power and distribution to members through internal distribution arrangement.
The total project cost was estimated at Rs. 273.30 million including power house for incoming HT current, underground cable network and transformers for distribution to members to save upto 5% in transmission loss. The Ministry of Textiles, Government of India gave a grant of Rs. 122.50 million, the 189 members contributed Rs. 29.20 million and TEKIC obtained term loan of Rs. 121.60 million from Indian Overseas Bank and SIDBI. The land measuring 84 acres was purchased in Radhapuram village in Thirunelveli district.
Besides paying market price the land owners were permitted to continue their cultivation activities except in the small area where the wind mill was installed. The project work commenced in May 2004, wind mills were installed and generation of power commenced in June 2006.
Currently, TEKIC is meeting the full power requirements of members from own wind power and procurements from open market. On an average a member saves about Rs. 6.04 per unit which is Rs. 0.39 million per annum. TEKIC has not defaulted in loan repayment. Once repayment is completed by, the saving will increase to Rs.0.56 million per annum. The manufacturers of knitwear for export get clean and green energy from renewable source is commendable effort to contain global warming. Till date TEKIC has generated more than 68.30 million units of wind power which means more than 37,000 tons of coal has been saved. Noise and air pollution in the area due to operation of diesel generating sets by all 189 units is totally eliminated.