Textile industry in Tamil Nadu should invest more in renewable energy to remain competitive, said Ravi Sam, chairman of Southern India Mills’ Association (SIMA).

Speaking at the annual meeting of the association here, Mr. Ravi Sam, who was re-elected chairman of the association for 2022-2023, said the cost of grid power has crossed ₹ 8 a unit in almost all the major textile manufacturing States, except those having hydel power generation capacities.

This has impacted the cost competitiveness of the textile industry in the country. Cost of energy accounts for over 40 % of yarn manufacturing cost and it has become imperative for the textile mills to plan for 100% captive power generation, be it wind or solar.

Mr. Sam said the combination of wind power, solar power and IEX power has tremendous advantage and will enable the textile industry to remain competitive. He also appealed to the Chief Minister to reconsider the steep increase in demand charges, wheeling charges, transmission charges and 6 % annual increase in tariff linking the same to inflation rate.

On the raw material front, he said the country turned cotton deficit from being a cotton surplus one this season and hence production at textile mills dropped 30 % to 50 % between July and October. He urged the Central government to address the structural issues on the raw material front for the textile industry.

S.K. Sundararaman and Durai Palanisamy were re-elected deputy chairman and vice-chairman of the association.

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Printable version | Sep 15, 2022 8:43:17 pm | https://www.thehindu.com/news/cities/Coimbatore/textile-industry-urged-to-invest-in-renewable-energy/article65895820.ece