Coimbatore, Dec 1 (): Owing to the extended power cuts in Tamil Nadu, Textile mills in the state have decided to move to Maharashtra and Gujarat as both the states have been encouraging and supporting them financially.
“Textile mills in Tamil Nadu have been facing power problems since 2008 which has become worse in the recent past with 10-14 hour power cuts a day resulting in production losses and also the hike in diesel had made difficult to run the genset,” said secretary-general of Southern India Mills Association (Sima) K Selvaraju.
Tamil Nadu which accounted 47 percent of yarn production in India in 2010-11, became largely dependent on states like Gujarat, Karnataka as well as Andhra Pradesh requiring 95 percent of the 10 million bales of raw cotton.
There has been neither any addition of spindles nor the state has seen any new investments in expanding the capacity in the recent past, said chairman of SIMA S Dinakaran who is also the joint managing director of Sambandam Spinning Mills in Salem.
The state which had 23 million spindles and was once adding 700,000 to 800,000 spindles a year has been pushed to great distress due to the present situation of 16 hours of electricity cut in most parts of Tamil Nadu.
In order to attract crores of investment, Maharashtra and Gujarat have decided to unveil textile policies and new plans in the coming years. Maharashtra principal secretary for textiles who visited Coimbatore a couple of weeks ago has offered to support financially to Tamil Nadu-based textile units to set up operations.
With 20 of 350 SIIMA members in the state at present expected to move towards Gujarat and Maharashtra, more members will be shifting once the Gujarat polls are concluded. Some members are also waiting for the situation to improve in Tamil Nadu, said Mr Dinakaran.