A delegation from the Southern India Mills Association (SIMA) met with Tamil Nadu Chief Minister C Joseph Vijay this week, presenting a urgent case for immediate state intervention to stabilize operational costs within the textile sector. With manufacturers facing mounting pressure from volatile input prices and global market shifts, the association emphasized, addressing the current electricity-related bottlenecks is essential for Tamil Nadu to maintain its position as India’s premier textile manufacturing hub. The delegation specifically called for the withdrawal of network charges for rooftop solar generation in alignment with High Court directives and urged the government to freeze demand charges at Rs 608 per kVA per month for the next three years to provide long-term fiscal predictability.

Mitigating operational volatility

Beyond immediate tariff adjustments, the industry representatives requested,the collection of arrears for deemed demand charges be deferred pending a final ruling from the Appellate Tribunal for Electricity (APTEL). Coupled with requests for accelerated funding for the PM MITRA Park scheme in Virudhunagar and the comprehensive implementation of the Tamil Nadu Integrated Textile Policy, these measures form a critical roadmap for industry survival. The appeal follows recent industry-wide concerns regarding raw material shortages - specifically the 25 per cent rise in cotton prices over the last two months - which have prompted the state government to seek central intervention for the removal of the 11 per cent import duty on cotton to safeguard employment and export commitments.

Industry representation

The Southern India Mills Association (SIMA) is a leading representative body for the textile industry in South India, headquartered in Coimbatore. It advocates for the interests of spinning, weaving, and processing mills, focusing on policy reform, sustainable manufacturing practices, and international trade competitiveness to support India's broader textile export ambitions.