Tamil Nadu Textile Industry Seeks Power Tariff Support In New Industrial Policy
As Tamil Nadu prepares its new industrial policy, textile industry bodies have urged the state government to introduce targeted measures aimed at improving competitiveness, reducing power costs and attracting fresh investments across the textile value chain.
The Southern India Mills’ Association (SIMA) has recommended a hybrid incentive framework combining upfront capital subsidies, power tariff support and assistance for technology modernisation. According to the association, such measures would strengthen investment viability across spinning, weaving, processing, garment manufacturing, technical textiles and textile machinery manufacturing.
SIMA noted that energy remains one of the largest cost components in textile manufacturing, making competitive power tariffs critical for sustaining the industry’s competitiveness. The association has also sought incentives to encourage the adoption of renewable energy, which could help manufacturers lower operating costs while advancing sustainability goals.
In addition, SIMA has called for employment-linked incentives to promote large-scale job creation, particularly for women and skilled workers. The association believes that workforce-focused support measures would strengthen Tamil Nadu’s position as one of India’s leading textile and apparel manufacturing hubs while generating significant socio-economic benefits.
The Recycling Textile Federation has also submitted recommendations, focusing on reducing power-related costs and improving industrial infrastructure. The federation has urged the government to permit private power procurement, remove high-tension equivalent demand charges for low-tension consumers and waive renewable energy wheeling charges.
Industry stakeholders believe these measures would significantly improve cost competitiveness for textile manufacturers, especially at a time when rising energy costs continue to impact margins.
The federation has further recommended infrastructure upgrades in industrial estates and the development of district-level commercial complexes to support marketing and business development activities for local industries.
With Tamil Nadu accounting for a significant share of India’s textile and apparel production, industry bodies expect the new industrial policy to play a crucial role in driving future investments, employment generation and sustainable growth across the sector.
