The Government of Andhra Pradesh has proposed to drastically slash power tariff to spinning mills in the State to uplift the textile industry. The spinning mills provide employment to four lakh people in the State, but several mills are on the verge of closure due to heavy losses.
A cabinet sub-committee headed by Finance Minister Yanamala Ramakrishnudu has formally moved a proposal to offer power at Rs 2 per unit to the spinning mills. The committee comprising Rural Development Minister Ch Ayyanna Patrudu, Transport Minister Sidda Raghava Rao and the Finance Minister Arun Jaitley, met after managements of spinning mills met the Chief Minister Chandrababu Naidu and urged him to bail out the industry.
The Finance Minister said that the new tariff, if implemented, would cause a burden of Rs 400 crore on the exchequer. The cabinet will take a final call on the issue.