Our Bureau

Chennai, March 17

THE Indian Wind Power Association, a representative body of those who have put up wind turbines, has urged the Textile Ministry to permit wind turbine generators to be installed under the Technology Upgradation Fund (TUF) for the textile industry.

In a representation to the Union Textiles Minister, Mr Shankarsinh Vaghela, the association referred to the decision of an inter-ministerial committee to remove wind turbine generators from the list of eligible machinery under the TUF scheme from February 22 and wanted the decision to be reconsidered.

In the representation, the association President, Mr P.R. Ramasubrahmaneya Rajha, said wind turbines were included in the TUF scheme after representation by the textile industry to reduce its cost of production. The textile industry had to gear itself to meet global challenges following the dismantling of the multi-fibre agreement.

Removal of wind turbine generators from the TUF scheme at this juncture would affect the competitive edge of Indian textile mills that used wind power due to higher power cost.

Mr Rajha, who is chairman of the Ramco group, which has interests in cement and textiles, said textile units that had installed windmills in the past few years when they were allowed under the TUF scheme were more financially viable to compete in the world market.

A new unit or an existing unit expanding capacity by about 25,000 spindles under the TUF scheme with investment in windmill would have to bear an additional interest burden of more than Rs 6 crore over the total repayment period of the loans availed of because of the removal of windmills from the scheme.

(This article was published in the Business Line print edition dated March 18, 2005)
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