Coimbatore, Feb. 2
THE Tamil Nadu Government's announcement of power tariff reduction for powerloom weavers has buoyed the mood among powerloom operators across the State.
"Power being a major input, a lower power tariff would definitely bring down the production cost and make the weaving operation in the decentralised sector more competitive," said Mr M.S. Mathivanan, president of the Tamilnadu Powerloom Federation.
Though the weavers had repeatedly pleaded for reduction in power cost, the Government announcement had surpassed their expectation, he said. Mr Mathivanan also mentioned that the Government extended Rs 4 crore subsidy for each of the three upcoming hi-tech weaving parks, in addition to 50 per cent stamp duty exemption for land acquisition. He also hoped that the Government would soon fulfil its promise to extend five per cent interest subsidy for loom modernisation.
Mr B.K. Senthil Kumar, Chairman of the Rs 50-crore Palladam Hi-tech Weaving Park, said that the Government had earlier removed `cenvat' duty on powerloom fabric, and was now following it up with the reduction in power tariff.
Power cost and spares constituted one-third of the conversion cost for the powerloom industry and a lower power tariff would indirectly promote rural employment, he said.