November 29, 2022
  • November 29, 2022

The textile industry invited to invest in renewable energies

By on September 15, 2022 0

Tamil Nadu’s textile industry should invest more in renewable energy to stay competitive, said Ravi Sam, president of the Southern India Mills’ Association (SIMA).

Speaking at the association’s annual meeting here, Mr. Ravi Sam, who was re-elected president of the association for 2022-2023, said the cost of electricity from the grid has crossed ₹8 per unit in nearly every major textile manufacturing state except those with hydel power generation capabilities.

This has impacted the cost competitiveness of the country’s textile industry. The cost of energy accounts for over 40% of the cost of manufacturing yarn and it has become imperative for textile mills to provide 100% captive electricity generation, whether wind or solar.

Mr. Sam said that the combination of wind power, solar power and IEX power has a huge advantage and will keep the textile industry competitive. He also called on the Chief Minister to reconsider the sharp increase in application fees, transport fees, transport fees and the 6% annual increase in tariffs linked to the rate of inflation.

On the commodities front, he said the country has gone from a cotton deficit to a cotton surplus this season and therefore production at textile factories fell by 30 to 50 percent between July and October. He urged the central government to solve the structural problems on the front of raw materials for the textile industry.

SK Sundararaman and Durai Palanisamy were re-elected vice president and vice president of the association.