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

Pic: Shutterstock

Textiles | On 26th Jul 2021

Vietnam opens new rail freight link to Belgium on China-Europe line

Vietnam Railways (VNR) has added a new rail freight link from Vietnam ...

Pic: Shutterstock

Textiles | On 26th Jul 2021

UK launches consultation on scheme for trade with developing nations

The United Kingdom recently launched a consultation on new trading...

Pic: Shutterstock

Textiles | On 26th Jul 2021

Prime Content| Rising demand to positively impact Australian wool exports: TexPro

Australian wool exports are expected to grow in the current season...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchain is not a silver bullet for each and every problem in supply...

Textile Industry, Head honchos

Textile Industry
Head honchos

Ensured payment of fee was least concern for students

Textile Industry, Head honchos

Textile Industry
Head honchos

Fabric selection & recommendation based on client's brief

Ritu Oberoi,

Ritu Oberoi

Established in 2018, Forsarees is a socially driven business enterprise,...

Meghavi Suthar,

Meghavi Suthar

Founded by NIFT graduate <b>Meghavi Suthar </b>in 2017, Kala is an...

Bharat Ahuja,

Bharat Ahuja

A mono store brand, <b>Bharat Ahuja's</b> Desire Design Studio has emerged ...

Ian Russell, Pireta

Ian Russell
Pireta

UK-based Pireta has developed a unique free-form process to add durable,...

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Vidur Adlakha & Riccardo Bennidini, La Fuori

Vidur Adlakha & Riccardo Bennidini
La Fuori

With an active presence in US, Italy and India, clothing brand La Fuori...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

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

Leave your Comments


July 2021

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


Advanced Search