The Southern India Mills’ Association ( SIMA ) has appealed to Tamil Nadu chief minister, J Jayalaithaa for reduction in power tariff considering the steep decline in fuels meant for power generation.
In a representation to the chief minister, SIMA chairman, M Senthilkumar said since textile industry is a power intensive sector, it has been undergoing severe financial stress due to high cost power.
The power subsidy, interest subsidy and various other incentives offered by major cotton growing states like Gujarat, Maharashtra, Andhra Pradesh, Punjab, Rajasthan, etc., combined with power shortage in Tamil Nadu until recently, worsened the situation for the textile industry in the state and virtually ended new investments.
As Tamil Nadu has now become a power surplus state and the tariff of power available in the open market is quite competitive, the SIMA has urged the chief minister to reduce the power tariff and also consider fixing a separate power tariff for the textile sector to revive the ailing industry from the current recession so that it can remain competitive in the global market.
