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Power tariff hike hurts Tamilnadu's ailing textile sector
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)

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