Industries in Coimbatore have sought the Central government’s support to Tamil Nadu government to boost green energy availability, skill workers, and create world class industrial infrastructure.
Tamil Nadu contributes to one-third of the textile business in the country with capacities across the textile value chain – spinning, weaving, and garments. It also boasts of 42 lakh MSMEs, including 4.5 lakh MSMEs in Coimbatore district.
In presentations made to the Finance Commission at a meeting held in Chennai recently, in the presence of Tamil Nadu Chief Minister M.K. Stalin, the Coimbatore District Small Industries Association (CODISSIA) stressed on the need for government-promoted industrial parks of 300-400 acres each in Coimbatore district to provide quality infrastructure to MSMEs at affordable prices. It will also attract foreign investments, especially in the manufacturing sector.
The Southern India Mills’ Association (SIMA) said migrant workers account for 75% of labourers employed in the State’s textile industry. The worker attrition rate is over 125% as the workers go to their hometowns to be with the family for around two months. After that, more than 75% workers migrate to some other units or States. Hence, housing facility should be provided for the workers. The State government needs adequate funding to support the project.
The State has 23% installed wind mill capacity (10,600 MW) and 10% of solar power capacity (8,200 MW) of the country. The industry is looking for quality green power at a competitive rate to sustain its competitiveness and meet the sustainability development goals (reduction of carbon footprint) that will become mandatory from 2027 to export to EU and other countries. The State should have a green energy corridor connected to the national grid, the SIMA said.
According to the CODISSIA, the governments should support MSMEs to install rooftop and ground-mounted solar power systems upto 112 KW, similar to the PM Surya Ghar Muft Bijli Yojana for households.
On skilling workers, the CODISSIA said that Coimbatore district has about 4.5 lakh MSMEs and nearly 100 colleges. A skill development university to upskill college students and also those in rural areas will bring down the dependency on migrant workers.
The SIMA pointed out that the Union Budget 2024-25 has announcements on upgrading Industrial Training Institutes to meet the skilled worker needs. Considering the size of the manufacturing capacities of Tamil Nadu, funds should be allocated to upgrade 50 ITIs under PPP mode.
It also highlighted the need for supporting and promoting production of textile raw materials – cotton and synthetic – in Tamil Nadu.
The textile industry in the State is almost fully dependent on Gujarat, Maharashtra and Telangana for raw cotton supply (120 lakh bales a year) and manmade fibres. The cost of bringing raw materials from other States increases the cost of production by ₹8 to ₹10 per kg, completely eroding the cost competitiveness of textile manufacturers in Tamil Nadu.
Tamil Nadu is suitable for production of extra long staple cotton and it has the potential to supply almost 30 lakh bales of ELS cotton. The Central government has an ELS cotton mission. Tamil Nadu government requires adequate funding to promote ELS cotton technology, implement agronomy practices of global standards, and produce ELS cotton.
It also accounts 75% of the viscose fibre and 10% to 15% of the polyester fibre and polyester filament yarn consumption of the country. The State must provide huge infrastructure facilities to attract investments for MMF manufacturing. Adequate funding needs to be provided for this purpose, the SIMA said.
Published – November 19, 2024 07:14 pm IST
