Why in the news?
As per the Annual Survey of Industries data released by the Union Ministry of Textiles, over 300 textile mills in Tamil Nadu went out of operation between 2021 to 22 and 2023 to 24.
Key Data
- 2021 to 22
- Total mills: 2,773
- Operational: 2,121
- 2023 to 24
- Total mills: 2,455
- Operational: 1,672
- Nearly 2 lakh powerlooms reportedly shut in the last few years.
- Majority units fall under MSME segment.
Major Reasons for Closures
-
High Power Cost
- Electricity tariff around ₹9.25 per unit
- Higher than competing States
- Units with wind and solar investments survived relatively better
-
Raw Material Issues
- Cotton, polyester, viscose sourced largely from northern India
- High transportation cost
- Earlier import duty on cotton impacted mills
- Quality Control Orders created compliance burden
-
Environmental Compliance
- Mandatory Zero Liquid Discharge norms for processing units
- Higher compliance cost compared to States permitting marine discharge
-
Financial Stress
-
- Higher bank interest rates
- Limited subsidy coverage
- MSMEs more vulnerable
| [2010] Tamil Nadu is a leading producer of mill-made cotton yarn in the country. What could be the reason?
1. Black cotton soil is the predominant type of soil in the State. 2. Rich pool of skilled labour is available. Which of the above is/are the correct reasons? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 |
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