Tamil Nadu’s textile industry has urged the state government to support renewable energy adoption through reforms such as annual wind power banking, solar power adjustments, and open-access incentives.
The sector says lower power costs are vital to improving competitiveness, while the government has assured consideration of the proposals.
The industry, which accounts for around one-third of India’s textile business, said rising power costs have become a major challenge, particularly as Tamil Nadu produces only 3-4 per cent of its cotton requirement and lacks man-made fibre manufacturing capacity. Industry representatives highlighted renewable energy as a key strategy to offset these structural disadvantages.
Among the key demands, the industry sought restoration of annual banking facilities for captive windmills commissioned after 2018, allowing surplus electricity generated during the windy season to be carried forward and utilised during periods of lower generation. It also requested that excess solar power generated during daytime be adjusted against electricity consumed between 10 pm and 6 am, withdrawal of network charges on rooftop solar installations, and exemption of open-access renewable power from cross-subsidy and additional surcharges for ten years on new investments.
Other proposals included freezing demand charges at the current ₹608 per kVA per month for three years, waiving penal interest on pending deemed demand charges, and developing a long-term, cost-effective solution for textile effluent treatment.
The minister assured the industry that its proposals would be taken up with the state Chief Minister C Joseph Vijay and acknowledged the urgency of addressing power-related issues, particularly for the textile processing segment. She also indicated that the government would consider establishing a Policy Advocacy Committee comprising key industry stakeholders to improve ease of doing business and facilitate timely policy intervention.
Fibre2Fashion News Desk (KUL)
