COIMBATORE: Seeking to improve the competitiveness of Tamil Nadu’s textile and spinning sector, the Southern India Spinners Association (SISPA) has urged the state govt to review electricity tariffs and charging mechanisms that were sharply increased during the previous regime.SISPA honorary secretary S Jagadesh Chandran said energy charges, maximum demand charges, peak hour charges and multiple direct and indirect levies have risen over the past few years, significantly increasing manufacturing costs for the industry. He said the tariff structure should be recalibrated with reasonable corrections by factoring in actual utilisation levels in factories.Highlighting fixed charges, the association said the levy has been raised from Rs 350 per kW to Rs 650 per kW, claiming Tamil Nadu now has the highest fixed charges in India.SISPA flagged an increase in peak-hour duration, stating peak hours have been extended from eight hours a day to 10 hours, adding to cost pressures for continuous-process spinning mills.According to the association, Tamil Nadu’s power tariffs are currently higher than those in competing states such as Gujarat and Maharashtra, raising concerns over erosion of cost competitiveness. It said tariff reforms are necessary if the state is to retain its leadership in industry and emerge as a global manufacturing hub, including in competition with countries such as Bangladesh and China.SISPA sought a review of maximum demand and peak-hour charge frameworks for continuous production units, calling for concessions that support stable operations. It demanded complete removal of the Re 1 per unit network charge levied on rooftop solar projects, arguing it would accelerate renewable energy adoption.The association said the proposed reforms would lower production costs, attract new investments, safeguard jobs and support industrial growth and exports.EOM
