Coimbatore Textile Industry to Play Crucial Role in TN’s USD 1.5 Trillion Economy: Industries Minister

Coimbatore: Tamil Nadu Industries Minister S. Keerthana on Saturday called upon the textile industry to play a pivotal role in achieving the State's Vision 2035 goal of transforming Tamil Nadu into a USD 1.5 trillion economy.

She was addressing an interaction organised by The Southern India Mills' Association (SIMA) with office-bearers of textile associations representing the entire textile value chain in the State. MLAs Kanimozhi Santhosh (Kavundampalayam), N.M. Sukumar (Sulur) and K.S. Sri Giri Prasath (Singanallur) also attended the meeting.

Representatives of the textile industry highlighted that Tamil Nadu accounts for nearly one-third of India's textile business but has been facing mounting challenges due to rising production costs, particularly electricity tariffs. They also pointed out that the State's cotton production meets only 3–4% of the industry's annual requirement and that the absence of large-scale man-made fibre manufacturing facilities has increased dependence on efficient manufacturing practices and entrepreneurial resilience.

The industry acknowledged the State Government's recent interventions, including its recommendation to the Union Government to exempt cotton from the 11% import duty during the off-season and its decision not to implement the proposed 3.48% electricity tariff hike. According to industry representatives, these measures enabled manufacturers to fulfil export commitments and recover from a difficult phase.

Responding to the industry's concerns, Keerthana assured the participants that all their demands would be placed before Chief Minister C. Joseph Vijay and that the government would work towards resolving them in a time-bound manner.

She recognised the need to address power-related issues and the challenges confronting the textile processing sector, describing it as a critical link in the textile value chain. To strengthen industry-government collaboration and improve the ease of doing business, she announced that a Policy Advocacy Committee comprising major stakeholders from the textile sector would be constituted.

During the meeting, SIMA Chairman Durai Palanisamy submitted a memorandum seeking several policy measures, including annual banking facilities for windmills commissioned after 2018, utilisation of surplus solar power generated during the day for night-time consumption, waiver of penal interest on pending deemed demand charges, freezing electricity demand charges at the current rate for three years, withdrawal of network charges for rooftop solar generation, exemption of open access power from cross-subsidy and additional surcharges for new investments for 10 years, and a long-term, cost-effective solution for the treatment and disposal of textile effluents.

The industry expressed confidence that timely policy support would enhance competitiveness, attract fresh investments, strengthen exports and accelerate Tamil Nadu's progress towards its Vision 2035 economic target.