Increase in power tariff causes alarm to textile sector

27 Sep '10

2 min read

The textile sector is alarmed by the sharp increase in its power tariff, which rose to Rs 7.15 per kwh in January, 2010 from Rs 3.70 per kwh in August 2006 – an increase of more than 100 percent over a period of four years.

According to a spokesperson from the textile industry, the power tariff is equal to 30 percent of the conversion outlay of textile spinning and organized weaving sector. Due to the rising electricity costs, continuation of factory operations has become difficult.

The export-driven textile sector is currently facing tough competition from the other regional contenders in the global market. The textile producers in other competing countries are exempted from several restrictions. Electricity per kilowatt as expressed in terms of US cents is much lower in other Asian countries, like it costs 8.14 cents in India, 8.5 cents in China and 5.23 cents in Bangladesh as compared to 9.41 cents in Pakistan.

The industry in the country is facing, for the first-time, scarcity of raw materials, exorbitant financial expenditure and aggressive approach of the western countries towards Pakistan. The government should, therefore, reassess the industry's increasing burden of power tariff. It is only the textile sector, which can restore the economy that has been badly affected by damage caused by the recent floods.

The President as well as the Prime Minister should get involved in the matter and instruct the concerned officials to offer reasonable tariff for B/3 & B/4 industrial connections for the sake of the textile industry and textile exports, according to the spokesperson.

Fibre2fashion News Desk-India

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