Recycle Textile Federation (RTF) urged that the Tamil Nadu Government should certainly reconsider its decision to hike the power tariff for TANGEDCO consumers, at least for 2 years. 

RTF presently has 400 members representing various mills from Tamil Nadu. These mills process/recycle cotton waste & PET bottles into yarns and garments. Coimbatore and Tiruppur alone have 180 such mills.

RTF’s President Jayabal said that 70% of  the Open End Spinning Mills have LTCT power connections and 30% have HT line. Presently the charge is Rs. 6.35 per unit. If the proposal is accepted, then the LT industries tariff will be increased by Rs 1.15 per unit. This will not only cripple the Open End Spinning Mills but the entire Micro, Small and Medium Enterprises in Tamil Nadu, Jayabal said. 

He also said that the Peak Hour System charges are expected to increase the production charges further. “If we work at the peak hours following the revision in charges, our manufacturing cost will go up by Rs.12 per kg., and we will have to spend 18-24% more on electricity”, he shared.

Jayabal said Tamil Nadu depends on other States for Cotton, and the Northern States for dyeing, printing and processing. The cost of raw materials, following Covid-19,  have increased 100% to 200% for some industries while for some industries the hike is up to 500%. 

“Tamil Nadu pays the highest GST among states of India, and in that Textile Industry’s contribution is significant. With limited resources, the mills here make a huge contribution for the State’s income and offer mass employment,” Jayabal said. 

In textiles sector alone there would be 15-20 lakh migrant workers. There are more than 70 lakh employees who depend on Textiles in Tamil Nadu, he said. 

“What we urge the State Govt. is that they postpone this proposal to hike power tariff for the next two years, and give us a dedicated textile park with all the dyeing, printing and processing facilities near water abundant regions close to the coast,” he said.