Powerloom weavers urge Gujarat CM to give relief in power tariff

by Textile Quotient News Desk
24 Jan 2019

The Federation of Gujarat Weavers’ Association (FOGWA) along with The Federation of Indian Art Silk Weaving Industry (FIASWI) have asked the Gujarat chief minister Vijay Rupani to consider giving relief in power tariff to the existing powerloom units and providing 10% capital subsidy in the textile policy announced by the state government.

The Gujarat government has reduced Rs 3 per unit in the low tension (LT) and Rs 2 in the high tension (HT) lines for the new industrial units and those expanding the units with new machinery in the new textile policy. Nevertheless, the powerloom industry says that there is nothing for the existing 6 lakh powerloom units in Surat. This would result in the competition between the existing textile factories and the upcoming units.

The powerloom weavers also raised concern about the textile policy missing the important point of providing capital subsidy. The weavers want that the government should include 10% capital subsidy for the units located in the city limits and 15% capital subsidy for those in the outskirts with subsidy cap of Rs 20 crore. As per Bharat Gandhi, FIASWI chairman, Surat is already an established man-made fabric (MMF) centre contributing over 60% of the total fabric demand of the country. The existing units need support for modernisation along with power tariff subsidy; the government is providing benefits to only new units. Says Gandhi,  “The power tariff subsidy and capital subsidy is demanded to prevent the existing factory  owners to put up units in Maharashtra, where they are getting power at Rs 3.50 per unit.”

Corroborating Gandhi’s statement Ashok Jirawala, President of FIASWI said, “It is the responsibility of the government to prevent the unit owners going to other states due to conducive business environment there. We want increase in subsidy in technology upgradation scheme from 10% to 30%.

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