Tamil Nadu Textiles Sector Pushes for Energy Reforms in Upcoming Industrial Policy

Industry Leaders Propose Hybrid Incentive Framework

As the Tamil Nadu government prepares its fresh industrial policy, textile trade bodies are intensifying calls for structural financial relief. The Southern India Mills Association (SIMA) argues that the labor-heavy nature of the sector requires a three-pronged support strategy. This proposed model integrates upfront capital subsidies with technology upgrade assistance and sustained power tariff support. Industry analysts suggest that initial capital injections are necessary to ensure the viability of specialized operations, including spinning, weaving, technical textiles, and machinery manufacturing.

Energy Costs and Renewable Integration

Electricity expenses remain a primary burden for manufacturers, prompting a push for more competitive utility pricing. To enhance cost-efficiency, the industry is advocating for specific measures:

• Implementation of incentives for adopting renewable energy sources.
• The abolition of high-tension (HT) equivalent demand charges currently levied on LT CT consumers.
• Permission for unrestricted private power procurement to bypass state monopolies.
• Waivers on wheeling charges for renewable energy transmission.

Infrastructure and Employment Standards

The Recycling Textile Federation has identified infrastructure gaps as a barrier to growth, calling for fortified facilities within industrial estates. They further suggest the creation of district-level commercial complexes to act as dedicated marketing hubs for regional goods. Beyond hardware, SIMA emphasizes that any new policy must include employment-linked incentives. Such a mechanism aims to stimulate large-scale hiring, with a specific focus on integrating more women and certified skilled professionals into the workforce.

Source: The Hindu — National