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Textile sector seeks exemption from power tariff hike
Aug '10
The Southern India Mills Association (SIMA) has urged the Tamil Nadu State Government to keep the textile sector out of the purview of the proposed increase in electricity duty.

Distressed over the proposed increase in tariffs, J Thulasidharan, Chairman of SIMA said, in view of the ample potential for employment, severe power crisis touching around 45 percent and with lower levels of capacity utilization, State's textile industry should be exempted from the proposed imposition of hike in power tariffs, just like Kerala.

Over 70 percent of all the wind turbine generators set up in the State, are in textile sector. Still, as the evacuation capacity of wind energy is scarce, the industry is encountering heavy losses.

If the tariff is increased at this point of time, it would levy extra load on the industry rendering it in-competitive, informed Thulasidharan, during his meeting with the Government.

He also drew Governments' attention towards TNERC's directive to the State Electricity Board instructing it to not overburden the HT customers with cross subsidy. The concerned directive was very much overlooked, while deciding upon the new power tariff plan. This increase in power duties would now hike the prices of yarn by Rs 2-3 per kg, he added.

Fibre2Fashion News Desk - India

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