Southern India Mills Association today expressed concern over the proposed hike in power tariff by Tamil Nadu, which would make the entire textile industry in the state unviable, leading to mass closure, besides compelling textile entrepreneurs to migrate to other states.
Introduction of R and C measures, by imposing 20 per cent power cut and 90 per cent evening peak hour restriction together with steep tariff increase proposals has jolted the industry in the State, SIMA chairman, T Rajkumar said here.
The textile mills in Tamil Nadu are already facing several challenges on power front including poor evacuation of wind energy, besides high transportation cost for bringing more than 95 per cent of the raw material from Gujarat and Maharashtra.
Five per cent VAT on cotton and cotton yarn is another problem as the CST is only 2 per cent, Rajkumar said in a release.
The industry is the single largest consumer of TANGEDCO accounting for 45 per cent of the revenue generated by it and the only industry which consumes power 24 x 7 hours at a constant load and therefore the cost to serve is the lowest when compared to any other consumer, he said.
The Central and State governments should make one time allocation for wiping out all the losses of electricity boards, implement scientific system and make the Boards efficient and cost effective and also financially healthy, he appealed.
He appealed to the Tamil Nadu Chief Minister to intervene in the matter and recommend TNERC to fix a separate power tariff for the industry based on cost to enable Tamil Nadu emerge as the number one state in the country and also as the global hub in the textile business.
Meanwhile, Tirupur Exporters Association, president A Shaktivel appealed the TNERC to exempt the Tirupur knitwear exporting units from power hike proposals, as a secial consideration. Otherwise, it will be difficult for them to sustain in the competitive market.
