30% production loss boz of powercut
The small-scale spinning units in the region have been hit by the frequent power cuts experienced during the last few days.A release from the South India Small Spinners’ Association said the units were suffering 25 to 30 per cent production loss due to the power cuts. Power supply was disrupted for six to eight hours a day, affecting the machinery and equipment on which the units had invested heavily.Further, during the last few months the mills were hit by factors such as increase in raw material costs, slump in yarn prices and hike in interest rates and were facing a financial crisis.The unscheduled power cuts only aggravated to their problems. It would be financially viable for the mills to run their plants only when at least 92 per cent of the installed capacity was used. However, with these issues, the mills were not able to use the expected capacity levels.The association appealed to the Tamil Nadu Electricity Board to inform the mills of the power cut schedule.
