Tamil Nadu Textile Industry Seeks Power Tariff Relief to Boost Growth
Tamil Nadu’s textile industry has appealed to the state government to introduce measures that lower electricity costs and encourage fresh investments as it prepares a new industrial policy.
The Southern India Mills Association (SIMA) has proposed a hybrid incentive framework combining upfront capital subsidies, power tariff support, and assistance for technology upgrades. According to the association, such a model would improve the financial viability of investments across spinning, weaving, processing, garment manufacturing, technical textiles, and textile machinery production.
SIMA highlighted that electricity is one of the largest operating expenses for textile manufacturers and urged the government to include competitive power tariff support in the new policy. It also recommended incentives for renewable energy adoption to help reduce production costs and improve the global competitiveness of Tamil Nadu’s textile sector.
In addition, the association called for employment-linked incentives to encourage large-scale job creation, particularly for women and skilled workers, further strengthening the labour-intensive industry.
Separately, the Recycling Textile Federation urged the Tamil Nadu government to address long-standing demands in the upcoming State Budget to help reduce manufacturing costs and improve industrial competitiveness.
Federation Chairman M. Jayabal outlined eight key recommendations, including a 50% reduction in High Tension (HT) demand charges for consumers with loads below 1,000 kW. He noted that these charges have increased from ₹300 to ₹608 per kW over the past five years. The Federation also sought a 50% reduction in fixed charges for Low Tension Current Transformer (LTCT) consumers, where tariffs have risen from ₹35 to ₹165 per kW.
Other recommendations include increasing the LTCT load ceiling from 150 kW to 200 kW, allowing consumers with connected loads above 100 kW to procure electricity directly from private suppliers, and eliminating HT-equivalent demand charges for LTCT consumers with 150 kW loads.
Industry bodies believe that implementing these measures would lower operating costs, improve investment attractiveness, and reinforce Tamil Nadu’s position as one of India’s leading textile manufacturing hubs.