It never rains but it pours!
Already struggling with low orders and increasing cost, the apparel industry in Uttar Pradesh received yet another setback when The Uttar Pradesh Electricity Regulatory Commission (UPERC) approved up to 12 per cent increase in power tariff for various consumer categories.
For industrial (heavy) consumer category, tariff hike is kept in the range of 5 to 10 per cent.
The textile and apparel industry of the state has expressed its unhappiness with the decision of tariff hike.
Lalit Thukral, President, Noida Apparel Export Cluster told Apparel Resources that he has appealed to the Chief Minister to look into this matter. “As apparel manufacturers are already struggling and factories are not running their full capacities, we are not in the position to bear any new cost.”
Various trade associations of the state are discussing the issue with their members and planning their strategies to oppose this decision.
Many garment manufacturers, especially apparel exporters, are also of the view that State Government is not supporting the existing apparel manufacturing industry at all. Few years back, apparel exporters of Delhi had shifted their units to Noida as the latter costs less; however, now the overall cost is increasing in Noida too and it is not as promising apparel manufacturing hub as it used to be few years ago.