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40% power shortage drives textile industry towards closure – SIMA
10 Oct '08
4 min read
Dr Srinivasan has pointed out that the textile mills should achieve minimum 90% utilization for breakeven and if the utilization goes below 85%, the textile mills will become sick as per the study of South India Textile Research Association (SITRA). He has informed that the average utilization in the textile units during the last eleven months have gone well below 75% resulting in huge cash losses.
The recent announcement of additional restriction on power supply would bring down the capacity utilization to 60% resulting in definite closure of the entire textile industry in the State. Dr Srinivasan has indicated that 40% power shortage would lead to loss of jobs to several lakhs of people, industrial unrest due to consequential lay off, etc.
He has further said that in many textile mills the workers have already started agitating against stoppage if this trend continues, the State would face serious industrial and social unrest in large scale.
Therefore, SIMA chief has appealed to all the political parties in the State to work collectively to solve the power crisis in the overall interests of industry and the public and impress upon the government to announce the scheme for operating the HSD oil generators immediately.
Dr Srinivasan has pointed out that unless the Government comes out with the proposed Scheme for operating the high speed diesel oil generators available with the industrial units, the entire textile industry in Tamil Nadu would be driven to closure and result in unemployment for the large workforce particularly for the people below the poverty line and women folk from rural areas across the State. SIMA Chief has hoped that the Hon'ble Chief Minister would realize the grave situation and make the announcement immediately.
The recent announcement of additional restriction on power supply would bring down the capacity utilization to 60% resulting in definite closure of the entire textile industry in the State. Dr Srinivasan has indicated that 40% power shortage would lead to loss of jobs to several lakhs of people, industrial unrest due to consequential lay off, etc.
He has further said that in many textile mills the workers have already started agitating against stoppage if this trend continues, the State would face serious industrial and social unrest in large scale.
Therefore, SIMA chief has appealed to all the political parties in the State to work collectively to solve the power crisis in the overall interests of industry and the public and impress upon the government to announce the scheme for operating the HSD oil generators immediately.
Dr Srinivasan has pointed out that unless the Government comes out with the proposed Scheme for operating the high speed diesel oil generators available with the industrial units, the entire textile industry in Tamil Nadu would be driven to closure and result in unemployment for the large workforce particularly for the people below the poverty line and women folk from rural areas across the State. SIMA Chief has hoped that the Hon'ble Chief Minister would realize the grave situation and make the announcement immediately.
Southern India Mills' Association (Sima)
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