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

Indian textile & apparel exports fall 13% in Jan 2018

Textiles | On 17th Feb 2018

Indian textile & apparel exports fall 13% in Jan 2018

A decline of 13 per cent year-on-year has been observed in the...

Brazilian cotton prices move up in first fortnight

Textiles | On 17th Feb 2018

Brazilian cotton prices move up in first fortnight

Cotton prices rose in Brazil in the first fortnight of February, as...

Courtesy: OrganoClick

Textiles | On 17th Feb 2018

OrganoClick introduces OrganoTex for water repellency

OrganoClick has introduced OrganoTex, a textile impregnation product...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Top executives
Textile & apparel bodies

The mid-term review of FTP is progressive, growth oriented

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

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

February 2018

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

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.3%
No
12.9%
Skip
16.8%

Total Votes: 101

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

Yes No

Active Poll

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

Yes
63.4%
No
29.7%
Skip
6.9%

Total Votes: 101

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

Yes No

Active Poll

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

Yes
88.1%
No
8.9%
Skip
3.0%

Total Votes: 101

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

Active Poll

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

Yes
83.2%
No
7.9%
Skip
8.9%

Total Votes: 101


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