Coimbatore, Sept 16 (KNN) The chairman of Southern India Mills’ Association (SIMA) Ravi Sam on Thursday said that the Tamil Nadu industry should invest more in renewable energy to remain competitive.

While addressing the annual meeting of the association, Sam said that the cost of grid power has crossed Rs 8 a unit in almost all the major textile manufacturing States, except those having hydel power generation capacities. This has impacted the cost competitiveness of the textile industry in the country.

“Cost of energy accounts for over 40 per cent of yarn manufacturing cost and it has become imperative for the textile mills to plan for 100 per cent captive power generation, be it wind or solar,” he said.

Sam further highlighted that the combination of wind power, solar power and IEX power has tremendous advantage and will enable the textile industry to remain competitive. He also appealed to the Chief Minister to reconsider the steep increase in demand charges, wheeling charges, transmission charges and 6 per cent annual increase in tariff linking the same to inflation rate.

Speaking about the raw material factor, he said the country turned cotton deficit from being a cotton surplus one this season and hence production at textile mills dropped 30 per cent to 50 per cent between July and October.

S.K. Sundararaman and Durai Palanisamy were re-elected deputy chairman and vice-chairman of the association at the meet.  (KNN Bureau)