Tamil Nadu Textile Sector Can Save Up To Rs 3,250 Crore Annually Through Clean Energy: Report

Chennai, Jun 5 (KNN) Tamil Nadu's textile industry could achieve annual savings of Rs 1,560 crore to Rs 3,250 crore by transitioning to clean energy, according to a report by Bengaluru-based think tank Climate Risk Horizons.

Clean Energy Shift Could Deliver Significant Cost Savings 
The report, based largely on data from the Annual Survey of Industries (ASI) over the past decade, assessed the decarbonisation potential of the state's textile sector and found that a shift to 100 percent renewable electricity alone could generate savings of Rs 2,320 crore to Rs 3,250 crore annually.

According to the study, rising fuel and energy expenses have become a major contributor to increasing production costs in the textile industry, affecting the sector's competitiveness, reported The Hindu.

Rising Energy Costs Weigh On Export Competitiveness 
Rakesh Ranjan, co-author of the report, said textile exports from Tamil Nadu have remained largely stagnant at around USD 7.4 billion since 2017, with escalating fuel costs emerging as a key challenge.

The report noted that the sector's total energy expenditure has nearly doubled over the past four years, while fuel cost intensity, measured as the ratio of fuel costs to output, has also increased significantly.

Indian Textile Sector Faces High Carbon Footprint 
It further highlighted that India's textile industry has one of the highest carbon footprints among major textile-exporting countries, exceeding 12.5 kg of carbon dioxide equivalent per kilogram of textile produced. This level is higher than that of Vietnam, Bangladesh and China.

The analysis suggested that replacing conventional energy sources with renewable-powered electric heating could improve cost competitiveness while simultaneously reducing emissions.

Industry And Policymakers Urged To Accelerate Decarbonisation 
Ashish Fernandes, Director, Climate Risk Horizons, said global brands sourcing textiles from India should support large-scale electrification of industrial heat processes and help drive policy and grid-level reforms needed to accelerate sectoral decarbonisation.

The report also called on the Tamil Nadu government and the state electricity regulator to facilitate greater adoption of renewable energy across the textile industry, including among micro, small and medium enterprises (MSMEs), to strengthen economic growth and employment generation.

(KNN Bureau)