Given by the Maharashtra State Government three-year subsidy of Rs. 3 per unit to spinning mills until 31 December 2021, the Maharashtra State Cooperative Textile Federation (MSCTF) is seeking an extension of the same.
The mills are expected to set up solar power plants at their premises in these three years in lieu of the subsidy.
On this issue, MSCTF and the representatives of cooperative spinning mills met the Maharashtra State Textiles Commissioner and sought a further extension on the power rebate.
Besides, they also met State Minister for Textiles Rajendra Patil and Parag Jain, Secretary, Textiles. Reportedly, the industry will now approach CM Uddhav Thackeray.
“The mills are currently finding it difficult to purchase cotton for their requirements because of the high prices of the commodity. The high electricity rates will only add to their problems,” said Ashok Swami, Chairman, MSCTF.
He also pointed out that none of the mills has set up solar power plants because permission has been granted only for 1 Megawatt (MW) capacity power plants, which generate electricity for barely 2 hours. It is not viable for mills to set up these plants unless the Government relaxes this condition and grants permission for 10 MW to 12 MW power plants.
He highlighted that the spinning mills are facing challenges like high cotton prices and high-interest rates on bank loans. In such a scenario, the high power rates will lead to a total collapse of the mills.
It is important to mention here that there are 150 cooperative spinning mills in the state and only 80 mills are currently functional with an installed capacity of 15 lakh spindles daily. The annual cotton requirement is around 12-13 lakh bales and the sales turnover is Rs. 2,500 crore annually.
As per reports, the State Government has invested Rs. 2,500 crore in these mills as shares capital.
