Textile associations demand measures to reduce energy costs in TN

With the Tamil Nadu government planning to come up with a new industrial policy, textile industry associations have urged the government to announce measures to reduce electricity costs and encourage investment.

The Southern India Mills Association said the labour-intensive textile industry will benefit from a hybrid incentive structure that combines seed capital subsidy, power tariff support and technology upgradation assistance.

Advance capital support helps to improve the viability of the project, especially in spinning, weaving, processing, apparel, technical textiles and textile machinery manufacturing. In addition, electricity constitutes a significant part of production costs, so supporting competitive tariffs and incentives for the adoption of renewable energy are essential to increase cost competitiveness.

SIMA added that employment-related incentives should form an integral part of the policy to support large-scale job creation, especially for women and skilled workers.

The Federation of Textile Recyclers demanded measures to allow private purchases of electricity and abolish HT-equivalent off-take charges for LT CT consumers.

It also appealed to the government to waive renewable energy charges, strengthen infrastructure in industrial estates and set up district-level business complexes to provide a platform for industries in the state to market their products.

Published – 30 Jul 2026 0:48 IST