The Southern India Mills Association (SIMA) has appealed to the Tamil Nadu Government to review its policies related to energy for the textile industry.
“It has become essential for the Government of Tamil Nadu to have a relook at the policies relating to the textile industry, particularly the power tariff, to sustain the survival of the industry,” said S.K. Sundararaman, chairman of the association.
Tamil Nadu has 12 million spindles, accounting for roughly 60 per cent of the country’s total capacity of 15 million spindles over 20 years old. Unless appropriate policies are established or the electricity tariff revision is reverted back to the level before September 2022, the majority of the State’s textile mills will close within a few years.
Because power costs more than 45 per cent of the manufacturing cost in the textile sector, it has become a determining issue for each textile unit seeking to maintain profitability and invest in modernisation, growth, and greenfield projects.
