Home / Knowledge / News / Textiles / Power tariff hike hurts Tamilnadu's ailing textile sector
Power tariff hike hurts Tamilnadu's ailing textile sector
31
Mar '12
Tamilnadu textile industry, which accounts for 47% of the spinning capacity, 1/3rd of the textile size, fetching over Rs.50,000 crores forex earnings and providing direct jobs to over 50 lakhs people, is currently passing through the worst ever crisis in its history.

The textile industry, being a continuous process and consuming power at a constant load, 24 hours a day, 7 days a week, it has been demanding to supply power on cost-to-serve basis as per the Electricity Act 2003 as the same would work out less than even the existing tariff and SIMA had strongly objected to the proposed increase and exempt textile industry from any increase as it was done earlier in Kerala State where the power tariff is much lower.

In a Press Release, Mr. S. Dinakaran, Chairman, The Southern India Mills' Association (SIMA) has stated that the Association was having lot of faith on the TNERC hoping that it would follow some rationale in fixing the revised tariff. He has wondered though the TANGEDCO had proposed only Re.1.00 per unit increase in the HT services, the TNERC has recommended much higher tariff than the demand.

Mr. Dinakaran has stated that when other textile cluster States like Andhra Pradesh, Maharashtra, etc., which are very strong in raw material base have given attractive incentives in power tariff for the textile industry keeping in mind to cost to serve supply, TNERC has again failed to consider the genuine demand of the mother industry.

SIMA Chairman has stated that the State would become totally uncompetitive not only for attracting any new investment in the textile industry, but such an abnormal power cost will lead to permanent closure of over 2000 spinning mills in the State which would have cascading effect on handloom, power loom, garmenting and all other labour intensive sectors in the State. He pointed out that no other State in country has increased the tariff to this extent at a stretch and the proposed tariff will be the highest in the country for the HT consumers.

Therefore, SIMA Chairman has appealed to the Hon'ble Chief Minister to exempt the ailing textile industry from the tariff hike at least for next two years till it revives from the recession and come back to normalcy keeping in mind the jobs of 50 lakhs of people belonging to below poverty line and rural women.

The Southern India Mills' Association (SIMA)


Must ReadView All

Textiles | On 24th Jul 2017

Govt extends deadline for GST composition scheme to Aug 16

The Government on India has extended the deadline for small...

L-R: Dhanapal, JMD, Best Corporation; Prabhu Damodaran, Convenor, ITF; Narayanasamy, MD, Micro Cotspin; Senthilnathan, MD Rasitex India; and Sabapathy, MD, Prasanna Spinning Mills

Textiles | On 24th Jul 2017

TN mills seek partnership with cotton growing states

Spinning mills in Tamil Nadu are seeking stronger partnership with...

Textiles | On 24th Jul 2017

Irani terms GST as a ‘great step towards transparency’

Union textiles minister Smriti Irani has termed the Goods and...

Interviews View All

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X