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Incessant power crisis impedes TN textile industry growth

02
Dec '08
Continuous interruptions in the power supply has already made the life of Tamil Nadu textile manufacturers, terrible, and now Government's decision to curb power supply further has added fuel to the fire.

Industries in Tamil Nadu are receiving power only for 20 hours per day and most of the industries in the large, medium, small and micro sectors are operating only 40 percent of their capacity, leading to drastic cut in production and widespread lay-offs.

Due to current power crisis, spinning mills, the hub of industrial operations in the region, are operating at less than half their production capacity.

Mr K V Srinivasan, Chairman of Southern India Mills' Association (SIMA), in this regard told Fibre2fashion, “Currently Government has restricted supply of power for 4 hrs during 6 to 10 PM in the evening, every day. Even the working condition in South India Textile research Association (SITRA) is severely affected. They also face the problem of unscheduled power cut due to which situation has become pathetic.”

In order to pull up the industry from further woes, Tamil Nadu Electricity Regulatory Commission (TNERC) has suggested utilization of ideal capacity of diesel generators. Industry has 3,500 Mega Watt capacities of generators. Even if the industry uses 100 Mega Watt for morning and evening hour, the situation can be improved.

TNEB is providing power at Rs15 per unit in recent power purchasing agreement from private people. It includes fuel cost, variable cost and added 2.75 paise. They suggested for paying Fuel Cost + Variable Cost.

TENB can also save 18 percent technical & transmission loss, by using capacity generators.

The Tamil Nadu textile industry, that engages around 10 million people directly and indirectly, consumes 110 lakh bales of cotton, accounting for 50 percent of the spinning capacity and 60% of yarn exports, is moving towards a complete shut down. Till now, nearly 2 lakh people have become jobless in spinning sector.

Fibre2fashion News Desk - India


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