Textile Mills Should Get Power At A Concessional Rate
Textile mills in Tamil Nadu should get power at a concessional rate and should be exempted from taxes on cotton and cotton products, according to the Chairman and Managing Director of Lakshmi Mills, G. K. Sundaram. He has said in a press release that this would help revival of the textile units in the State that were passing through a crisis. The strengthening of the rupee against dollar had affected textile exports and cotton prices had gone up despite a bumper crop.Textile mills in Tamil Nadu should get power at a concessional rate and should be exempted from taxes on cotton and cotton products
“Though the Central Government has announced series of measures to improve the prospects for exports, yet things are not happening as one wished for the revival of the fortunes of the spinning industry,” he said. Apart from the increase in cotton prices, the mills were apprehensive that they would not get quality cotton in the coming months.
Apart from these, the textile units in Tamil Nadu were unable to compete with those coming up in States such as Andhra Pradesh, Maharashtra and Gujarat. Though Tamil Nadu had more than 1,800 spinning mills, cotton production was just five lakh bales. Nearly 90 per cent of the cotton needs of the mills here were purchased from other States and the mills had to bear the additional transportation cost. Further, the cost of power in Tamil Nadu was higher compared to Andhra Pradesh or Kerala. Mr. Sundaram said Coimbatore emerged as a major textile centre since the mills had supply from Pykara Power. Now, “the mills are starving for power.” The State Government should take remedial measures at the earliest to revive the mills in the State, he said.
