Tirupur Exporters' Association on Wednesday, September 14 termed the recent hike in power tariff as a 'heavy blow' to the industry which was already reeling under the Russia-Ukraine conflict and requested the Tamil Nadu government to roll back its decision. Association president Raja M Shanmugham in a letter to Chief Minister M K Stalin said the survival of the industry, particularly the micro, small and medium enterprises were "at stake" due to the upward revision in power tariff.
"We apprehend that the combined negative factors may affect the MSMEs particularly and also lead to loss of jobs...these units are neither in a position to absorb the power tariff hike nor pass on to the overseas buyers," he said.
Referring to the Russia-Ukraine conflict, he said already hit by the COVID-19 pandemic, the knitwear segment was affected as the war caused a 'cascading effect' leading to a drastic reduction in export orders received by the traders from Europe.
The knitwear exports made from the region contribute about 13 per cent - Rs 33,525 crore of the total exports from the state, while the domestic knitwear sales was valued at Rs 27,000 crore. The knitwear sector alone was providing employment to eight lakh people both direct and indirect, he said.
The revised power tariff of the Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO) came into effect on September 10 despite opposition by various political parties. Tariff for the high-tension consumers viz. industries, factories has been hiked from Rs 6.50 per unit to Rs 12 per unit power.
As soon as the hike came into effect on September 10, political party leaders in the state were quick to condemn the hike, which is being seen as anti-poor. The parties demanded that the government roll back the steep hike as it would impact the lives and livelihood of the poor and middle-class families.
Amma Makkal Munnetra Kazhagam (AMMK) leader TTV Dhinakaran criticised the move on his official Twitter handle, saying that the DMK held few consultation meetings and gave no importance to the expressed views. Makkal Needhi Maiam (MNM) party also criticised the tariff hike stating that the people were already struggling with a rise in the price of fuel and essential commodities.