Sircilla Textile Park Suspends Operations Due to Financial Challenges

Currently, 70 textile units in the Baddenapalli area of Sircilla are facing challenges due to high electricity costs and a lack of marketing facilities.

Due to on-going crises and substantial losses in the textile sector, the Sircilla Textile Park Cloth Manufacturers Association announced that it would shut down operations starting October 6. This decision was reached during a general body meeting.

Currently, 70 textile units in the Baddenapalli area of Sircilla are facing challenges due to high electricity costs and a lack of marketing facilities.

The industry is in crisis, driven by rising electricity charges, which are currently at Rs 8 per unit, alongside increased raw material prices and insufficient marketing support. As a result, cloth worth nearly Rs 80 crore has accumulated in the textile park.

During the BRS administration, a power subsidy of Rs 15 crore was provided from 2015 to 2020, which helped stabilise the industry. However, without any support now, the textile park is unable to continue operations and has decided to shut down.

In Bhiwandi, Maharashtra, the government charges only Rs 2 per unit for electricity, offering support to the industry. The announcement from Sircilla has resulted in about 1,000 workers, many of whom are skilled labourers from various states, facing unemployment. This decision has created a state of uncertainty and concern among the industry workers.

News source: New Indian Express