Power tariff rise to hard hit Karnataka textile industry

12 Jul '05

2 min read

The Karnataka Textile Mills' Association (KTMA) alarmed against the proposed increase in power tariff.

KTMA informed that it would kill the textile industry and would tend mills to transfer their base to states such as Andhra Pradesh and Maharashtra. It would also result thousands of jobless in the industry.

The association's Chairman C Valliappa opined that plan to increase the power tariff to Rs 5.10 a unit from Rs 4.50 a unit would force most of the mills to shift their base to Andhra Pradesh, Tamil Nadu and Kerala states.

As compared to other states like AP (Rs 3.41 unit), Maharashtra (Rs 3.30 unit) and Kerala (Rs 3.20) unit, the power tariff in Karnataka was the highest, he added.

The industry was anticipated to create more than 12 million new jobs for the semi-skilled and unskilled labour in the coming five years and had likely to reach a turnover of Rs 3,74,000 crore from the existing Rs 1,54,000 crore, according to statement of Indian Cotton Mills' Federation.

Valliappa explained that the textile industry is major employment generating industry for the poor sections of society both in the rural and semi-urban areas. At present about 35 million people are engaged directly or indirectly with this industry.

However, in Karnataka state insufficient Government's support, unfavourable factors which include short of financial incentives and concessions has consequence in decline of spindleage from 12 lakhs in the 90s to 6.5 lakhs at present, and still the industry still declining.

More Textiles News - India...