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Tirupur exporters urge CM to exempt from power holiday
29
Feb '12
The Tirupur Exporters Association (TEA), a representative body of cotton knitwear exporters of Tirupur, has requested the Tamil Nadu state Chief Minister J Jayalalithaa to exempt Tirupur exporting units from power holiday on Friday.

In a letter to the CM, TEA President Mr. A Sakthivel urged for exempting the Tirupur exporting units from power holiday on Friday in view of the important role played by these units in exports and employment generation.

The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has announced four hours power cut per day and power holiday for Tirupur region on Friday, in addition to Sunday.

The letter said the power holidays make it difficult for the knitwear exporting units to function either on Friday or Sunday. It added that it would be very difficult for the exporting units to run on captive power using generator to continue the production, mainly to meet out the delivery schedule.

When the units are run using captive power, the power cost will go up by more than two and half times and the competitiveness of the knitwear export units will reduce, Mr. Sakthivel said.

The additional cost incurred for running the units using captive power will further increase the troubles for the export-oriented units, which are already facing various problems like decline of demand from EU and the US due to recession; increase in processing charges, wages, bank interest rates and transportation cost; and closure of dyeing units in Tirupur, he added.

Fibre2fashion News Desk - India

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