Home / Knowledge / News / Textiles / Punjab textile industry in power trouble
Punjab textile industry in power trouble
Aug '10
Textile mills in Punjab, which have been badly struck by power crunches, have now started investing outside the state. Where other industrial groups are rejoicing the revival after the economic crunch, the state's textile industry, employing highest number of workers next to agriculture, is still experiencing financial hitches.

Recently, with the hike in electricity duty to 13 percent, Punjab is the second most costly power supplier in the country with each unit costing Rs 5.28, following Gujarat wherein cost of power is Rs 5.65 per unit.

In addition, the recent hike in diesel prices has come like a blow for textile producers, as power makes up for almost eight to ten percent of the yarn manufacturing cost. Currently, Punjab faces sporadic power supply and around 30-40 percent of the power, which is utilized to keep the manufacturing units functional, is captive-generated.

Expansion plans of a number of active players from textile cluster in the state have been undermined on account of unavailability of power. Over the last few years, textile companies based in Punjab have almost made investments worth Rs 50 billion outside the state.

Also, as the hill states were granted tax break in 2003, it was noted that, many of the industries moved to Himachal Pradesh. The key firm amongst these was Ludhiana-based, Vardhman Group, which made investments worth Rs 18 billion in Baddi and Paonta Sahib.

The investments were made towards setting up 245,000 spindles, fabric weaving and finishing units together with 264 modern looms and a yarn and dyeing plant.

Over and above all this, in the last three year's duration, labour costs too have grown by three-folds on account of National Rural Employment Guarantee Scheme. While mills are experiencing acute shortage of power, they are further joined with a rise in electricity duty, which has significantly impacted the production costs and availability of yarn.

Fibre2Fashion News Desk - India

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Anshul Sood

‘Indian footwear market is nascent and largely a trend follower’

Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Abhimanyu Singh Rathore & Barbara Anna Kosiorek

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Jay Ramrakhiani
Occasions Elegance Wear

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search