SIMA urges TNEB to reduce power tariff

By Staff
|
Google Oneindia News

Chennai, June 24: The South Indian Millers Association (SIMA) today urged the Tamil Nadu Government and the Tamil Nadu Electricity Board (TNEB) to initiate steps to supply uninterrupted power at internationally competitive rates to the textile industry in the state.

In a statement here, SIMA Chairman S V Arumugam pointed out that the textile industry in Tamil Nadu was incurring huge losses due to frequent power trippings and higher power tariff.

This makes it difficult to compete with the neighbouring Andhra Pradesh and other countries like China, Pakistan, Bangladesh, Thailand and Indonesia, he said.

Andhra Pradesh was offering Rs 2.50 per KWH to the HT industries and up to Re 1 per KWH incentive for the new investments made in the textiles industry for a period of five years from the date of commercial production, he said and added this would be enable a 50,000 spindle mill to save Rs 25 crore to 30 crore in five years in the power tariff when compared to a new mill installed in Tamil Nadu.

He said there were 860 textile mills in the non-SSI category and 924 textile mills in the SSI category in Tamil Nadu, accounting for above 45 per cent of the all India spinning capacity.

Being a continuous process and capital intensive industry, the textile industry consumes electricity round-the-clock and seven days a week. Textile industry was the single largest consumer of TNEB in the state, he pointed out.

UNI

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