To be able to remain a cost competitive textile manufacturing hub in India, Gujarat’s textile manufacturers are likely to meet the State Energy Minister Saurabh Patel today and put forth their demand to cut power tariffs by 50 percent.
Southern Gujarat Chamber of Commerce and Industry (SGCCI) members, power loom weavers and textile makers had also reportedly discussed the tariff issue with Chief Minister Vijay Rupani earlier this week.
“Not only the power loom weavers, but the textile mills too are facing cut-throat competition from the mills in Maharashtra where Government is giving huge subsidies to revive the closed mills. If this happens, business will shift to Maharashtra.” Jitu Vakharia, President of South Gujarat Textile Processors Association (SGTPA), told TOI.
Numerous powerloom and embroidery units have shifted to other regions where electricity charges are less.
Notably, the power tariff in Maharashtra is around Rs. 3.50 per unit, while in Surat, makers pay Rs. 7.50 per unit.