T.N. power looms association wants proposed power tariff withdrawn

It will lead to closure of units and job losses, says federation president

The Tamil Nadu Federation of Power Looms’ Associations has urged the State government not to go ahead with its proposal to increase the power tariff by 70 paise per unit as it would lead to closure of units and job losses.

In a letter to the Chief Minister, federation president L.K.M. Suresh said there were six lakh power looms in the State providing jobs directly and indirectly to 30 lakh workers. For the welfare of the workers, the then Chief Minister M. Karunanidhi implemented a scheme to provide 500 units of free electricity to power looms that was increased to 750 units by the AIADMK government. The DMK party in its election manifesto had promised to increase free electricity to 1,000 units after coming to power. “But, the proposed 70 paise hike per unit of electricity for power units has come as a great shock to us,” the letter said.

The power loom sector is facing many challenges including skyrocketing prices of cotton yarn and other raw materials, increase in labour cost, competition from auto looms and drop in demand for finished products. Though the government had proposed to hike power tariff for consumers under high tension lines by 40 paise per unit, it is 70 paise per unit for power loom units. “The power loom sector is facing a bleak future and any further burden would affect the functioning of the units,” the letter said and wanted the proposal to be withdrawn to protect the livelihood of workers.