Power cost hits small and micro units

Though long hours of power cut is not an issue now for the industries in the district, the steep hike in power tariff in the last couple of years is.

For the powerloom units in the district, power tariff has increased by 110 per cent in the last three years and this has affected their cost competitiveness, say the weavers. In the case of micro industries, power cost has gone up by 100 per cent in the last four years.

The weavers in Somanur say that the powerloom units need to go in for modernisation now or increase the looms. However, the tariff slab under which the powerloom units are covered is available only up to 10 HP. It should be increased to 15 HP. “If we modernise our units, the power requirement will go up. Under the current system, the tariff will shoot up,” says a job-working unit owner.

In the case of micro units, the supply is under section 3B. In the last four years, the tariff has increased by 100 per cent. “If they are unable to reduce the tariff, we request the Government to place micro units under 3A1. It will bring down the power cost,” says S. Ravi Kumar, president of Coimbatore Tirupur District Tiny and Micro Enterprises Association.

On an average, power cost constitutes 15 per cent of the production cost for the micro units. “We hope the new Government will address this issue,” he says.

The weavers in Somanur add that their major requirement is 50 per cent subsidy from the Government for solar energy systems. At least units with 10 or more powerlooms can switch over to solar energy. Further, with high guideline values, land prices have shot up in Somanur area and textile traders and manufacturers are setting up godowns in the fringe areas of the town.