The power tariff hike proposal by Tamil Nadu Electricity Regulatory Commission’s (TNERC) is set to become a matter of concern for textile manufacturers in the State, who are still recovering from demand slowdown, while discouraging further investments in the State. As per the proposal, tariff for high tension consumers will be increased from Rs. 5.5 per unit to Rs. 7.22 per unit. It will increase the operations cost by 5 per cent. While almost all the major textile manufacturing and cotton growing states have come out with numerous initiatives to attract investments, the steep hike proposed by TNERC would make the entire textile industry in the state unviable and lead to mass closure, Southern India Mills’ Association (SIMA) chairman T Rajkumar said. Meanwhile, the Tirupur Exporters’ Association (TEA) has expressed its concern to TNERC in written and suggested exemption to garment exporters from the proposed hike.
