M. Senthilkumar, Chairman, The Southern India Mills’ Association (SIMA) has appealed the Chief Minister of Tamil Nadu J. Jayalalithaa, for reduction in power tariff considering the steep decline in fuels meant for power generation. SIMA Chief has also stated that the coal price per tonne has come down to Rs. 3,591 from Rs. 5,399 which was prevalent in 2013. Furthermore the furnace oil price excluding VAT has also reduced to Rs. 17.81 per litre from the level of Rs. 39.55 per litre three years back. Similarly, the HSD oil price excluding VAT has dived to Rs. 36.25 per litre from Rs. 51.70 per litre.
The association observes that Tamil Nadu has been facing acute power shortage since 2008 and therefore the power cost was exorbitant in the absence of grid power. Hence, the textile industry – a power-intensive sector – has been undergoing severe financial stress due to high cost power.
Senthilkumar has said that the textile industry, particularly the spinning sector, draws power at a constant load 24×7 throughout the year and therefore, the cost to serve is the lowest for the textile industry. He has added that the textile industry deserves to have a separate power tariff plan, which is essential for the spinning mills to remain competitive when all other States are offering huge incentives for textile industry.
SIMA has also urged the CM to consider fixing a separate power tariff for the textile industry to revive the ailing industry from the current recession and remain competitive in the globalized environment.