Representatives of the Southern Gujarat Chamber of Commerce and Industry (SGCCI) have urged the government to reduce power tariff rates for textile industry in the state. The demand surfaced during a meeting organized in Gandhinagar on July 30 to discuss the upcoming Textile Policy of Gujarat- 2018.
SGCCI wants the government to reduce it by 50 per cent from current Rs 7.50 per unit to bring it at par with power tariff rates in neighbouring state Maharashtra where tariff rates is charged between Rs 2 and Rs 2.50 per unit.
“High power tariff make clothes woven in Surat costlier than woven in Maharashtra,” Hemant Desai, head of SGCCI’s representative committee was quoted as saying to media.
SGCCI prefers power reduction instead of subsidy in new schemes as it would help factory owners to minimize their financial expenses. Since they are unable to upgrade old machines, power tariff reduction helps them save money which can be utilized in upgradation of machines.
In view of textile industry’s role in creating job opportunities and contributing in economic development, Desai wants low power tariff rate for the sector on the lines of the agricultural sector.
Around 18 lakh people are directly and indirectly employed with more than 6 lakh powerloom machines, more than 350 textile processing houses and 60,000 trading shops in Surat.
