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Maharashtra spinning mills want power rebate extension

Nov 19, 2021
Maharashtra spinning mills want power rebate extension

Maharashtra

Maharashtra State Cooperative Textile Federation (MSCTF), with the representatives of cooperative spinning mills, met the Maharashtra state textiles commissioner in Nagpur for a further extension on the power rebate.

The state government had granted a three-year subsidy of Rs 3 per unit to the mills until December 31, 2021. The mills are expected to set up solar power plants at their premises in these three years in lieu of the subsidy.

 

Ashok Swami, Chairman, MSCTF, said that, the mills are currently finding it difficult to purchase cotton for their requirements because of the high prices of the commodity and the high electricity rates will only add to their problems.

 

Cotton prices have gone up from Rs 38,000 per candy to Rs 68,000 per candy and it has become difficult for mills to purchase cotton for their requirements. The high power rates will lead to a total collapse of the mills, he said.

 

The millers will now approach Chief Minister Uddhav Thackeray to seek relief for the industry and the government to grant a further extension on power subsidy in addition to permission for bigger capacity solar power plants.

 

Of the total of 150 cooperative spinning mills in the state, only 80 mills are currently functional with an installed capacity of 15 lakh spindles daily. Ramchandra Marathe, Managing Director of the federation, said that the mills have approached the Centre to seek a cap on the high cotton prices.



Source: Financial Express

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