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Darkness engulfs Karnataka spinning mills
16 Dec '09
2 min read
The textile mills located in rural Karnataka are now rowing in the same boat as their counterparts in Tamil Nadu. These textile mills are also facing 12 hour unscheduled power cuts, leading to a disruption of production schedules.
This has come about due to an acute electric power shortage in the state which forced the state government to announce that rural areas would be fed with only 12 hours of electricity.
Around 80 percent of textile mills in Karnataka are located in rural areas and long power cuts can result in huge losses to the industry, along with which they are also paying high tariffs, when compared with the neighbouring states.
Speaking to Fibre2fashion, Mr C Valliappa, Chairman, Karnataka Textile Mills' Association (KTMA) said, the spinning industry has to achieve 95% utilization on 24 x 7 days' working basis for achieving break-even point and in Karnataka, apart from high power tariffs, non-availability of quality power adds to the cost of manufacturing.
Speaking about earlier times, he said, “Earlier Karnataka had abundant power at low tariffs when compared to neighboring states and during those periods quality power was available to spinning mills, however, this advantage was lost by the spinning industry during the late 90's.
“Added to the above problems, South-East Asian crisis during late nineties resulted in closure of mills and low productivity and non-availability of labour have added to the problems, because workers are tending to move towards high-tech industries which are growing strong and fast in Karnataka”.
This has come about due to an acute electric power shortage in the state which forced the state government to announce that rural areas would be fed with only 12 hours of electricity.
Around 80 percent of textile mills in Karnataka are located in rural areas and long power cuts can result in huge losses to the industry, along with which they are also paying high tariffs, when compared with the neighbouring states.
Speaking to Fibre2fashion, Mr C Valliappa, Chairman, Karnataka Textile Mills' Association (KTMA) said, the spinning industry has to achieve 95% utilization on 24 x 7 days' working basis for achieving break-even point and in Karnataka, apart from high power tariffs, non-availability of quality power adds to the cost of manufacturing.
Speaking about earlier times, he said, “Earlier Karnataka had abundant power at low tariffs when compared to neighboring states and during those periods quality power was available to spinning mills, however, this advantage was lost by the spinning industry during the late 90's.
“Added to the above problems, South-East Asian crisis during late nineties resulted in closure of mills and low productivity and non-availability of labour have added to the problems, because workers are tending to move towards high-tech industries which are growing strong and fast in Karnataka”.
Fibre2fashion News Desk - India
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