Tamil Nadu Electricity Regulatory Commission has notified the revised tariff Orders for energy charges and different services provided by TANGEDCO on 9th September 2022. The steep hike across the services would erode competitiveness of the HT/EHT consumers especially the power intensive sectors textile industry in Tamil Nadu. Tamil Nadu textile industry that accounts 1/3rd of the country’s textile business size and around 45 percent of the spun yarn manufacturing (spinning) capacity of the nation, fetches around Rs.1 lakh cr forex earnings, provides direct jobs to over 60 lakh people in the State, paying around Rs.4,000 cr SGST, etc., and the single largest HT consumer of TANGEDCO would have serious impact due to the steep tariff increase. Tamil Nadu does not have the raw material base (cotton and man-made fibres) and sources over 97% of its raw material mainly from States like Gujarat, Maharashtra, Telangana by spending Rs.3 to 6 per kg for transport. These States have become highly competitive and added capacities offering attractive incentives through unique textile policies and selling yarn at Rs.10 to 15 per kg cheaper and affecting the financial viability the spinning mills in Tamil Nadu.

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