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Tamil Nadu wind policy tweaks to boost textile sector competitiveness

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Tamil Nadu wind policy tweaks to boost textile sector competitiveness



Tamil Nadu’s revised wind power policy is expected to ease cost pressures on the state’s textile and garment industry, with industry body Southern Indian Mills’ Association (SIMA) welcoming the amendments as a timely move to strengthen sector competitiveness.

In a press statement, SIMA said the incentives and policy corrections would support greater adoption of green energy by textile manufacturers while helping the industry navigate stress arising from recent global developments. SIMA chairman Durai Palanisamy noted that access to renewable energy has become critical for the power-intensive textile sector amid volatile export markets and rising compliance costs.

Tamil Nadu’s revised wind power policy is set to ease cost pressures on the state’s textile and garment industry by supporting greater adoption of renewable energy.
Industry body SIMA has welcomed measures such as retention of annual banking and lower infrastructure charges.
The amendments are expected to enhance competitiveness and support power-intensive units.

Tamil Nadu, India’s second-largest state economy, accounts for nearly one-third of the country’s textile business size. The state contributes around 28 per cent of total textile employment, 45 per cent of national spinning capacity, 22 per cent of power loom capacity, and holds a leading position in cotton yarn production and exports. It also houses over 70 per cent of India’s cotton knitted garment manufacturing capacity. The textile sector is a key pillar in Tamil Nadu’s ambition to achieve a $1 trillion economy by 2030.

However, the industry is currently facing strong headwinds from multiple international factors, including tariff actions by the United States, the European Union’s gradual shift away from fast fashion, and geopolitical uncertainties impacting textile trade flows, including developments in Bangladesh.

Tamil Nadu has been a pioneer in wind energy investment since the 1990s, driven by supportive government policies. A significant number of captive windmills used by textile units are now over 20 years old. Industry concerns had intensified after the 2025 wind repowering policy denied banking facilities and evacuation support, posing challenges for power-intensive sectors such as textiles that rely heavily on captive wind power. SIMA had repeatedly urged the state government to extend banking facilities for older windmills and allow operational life extensions of up to 40 years.

Welcoming the amendments notified through the latest government order, Palanisamy highlighted that the retention of the annual banking system, the sharp reduction in Infrastructure Development Charges from the earlier proposal of ₹30 lakh per MW for five years to ₹50,000 per MW per annum for life extension or refurbishment, and the simplification of procedures for obtaining life-extension certificates from chartered engineers are key industry-friendly measures.

According to SIMA, these amendments will enhance Tamil Nadu’s competitiveness vis-à-vis other textile-producing states while reinforcing its leadership in renewable energy adoption. Palanisamy also welcomed the continuation of Power Purchase Agreements and the option to opt for energy wheeling agreements.

He expressed hope that the state government would further consider extending banking facilities to captive windmills installed after 2018, a move that could help power-intensive textile units remain competitive and attract fresh investment into the state.

Fibre2Fashion News Desk (KUL)



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China’s textile & apparel exports down 2.42% in 2025

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China’s textile & apparel exports down 2.42% in 2025



According to data from the General Administration of Customs (GACC), China’s combined exports of textiles, garments and accessories declined *.** per cent year on year to $***.** billion in ****, compared with $***.** billion in ****. This pullback followed a recovery in ****, when exports rose *.* per cent, after a sharp *.** per cent contraction in ****, when shipments fell to $***.** billion from $***.** billion in ****.

The **** slowdown was driven largely by a contraction in garment exports. Shipments of garments and accessories fell * per cent year on year to $***.** billion from $***.** billion, reflecting subdued apparel demand in key consumer markets, persistent inflationary pressures on discretionary spending, and continued sourcing diversification by global buyers seeking to reduce concentration risk. In contrast, exports of textile products—including yarns, fabrics and related articles—edged up *.* per cent to $***.** billion from $***.** billion, supported by steadier demand from regional manufacturing hubs and China’s competitiveness in higher-value textile intermediates.



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Lightering vessel shortage halts goods unloading at Bangladesh port

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Lightering vessel shortage halts goods unloading at Bangladesh port



A shortage of lightering vessels has halted unloading of goods from large ships at the outer anchorage of Chattogram sea port in Bangladesh.

As more than 85 ships are waiting at deep sea with around 4 million tonnes of goods, authorities are concerned over supply of essential commodities ahead of the Islamic holy month of Ramadan.

This has led to fears of shortages and price hike during Ramadan.

A shortage of lightering vessels has halted unloading of goods from large ships at the outer anchorage of Chattogram sea port in Bangladesh.
This has led to fears of shortages and price hike during the Islamic holy month of Ramadan.
The crisis is being widely believed to be artificial created and attributed to mismanagement and misuse of ships rather than a shortage of lightering vessels.

As of January 15, 108 cargo ships were waiting at the outer anchorage and Kutubdia channel of Chattogram port, according to domestic media outlets. These ships were carrying over 4.5 million tonnes of goods.

The Ship Handling Operators and Berth Operators Association (BSHBOA) reported that each mother vessel at the outer anchorage is incurring an average demurrage of Taka 1.6 million every day.

While a mother vessel with a capacity of 50,000 tonnes can transfer goods to river ports and terminals using lightering vessels within seven to 10 days, this time has now increased to 20-30 days.

The crisis is being widely believed to be artificial created and attributed to mismanagement and misuse of ships rather than a shortage of lightering vessels.

BSHBPA president Sarwar Hossain Sagar said the lack of available lighter ships has significantly disrupted the flow of goods. While 200-300 lighter ships are needed daily for normal operations, only 30-40 are currently available, causing a near standstill in unloading activities.

Operators have called for abolishing the serial system of ships and the implementation of an open system to effectively address the crisis.

Fibre2Fashion (DS)



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How technology is driving productivity gains in Bangladesh RMG sector

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How technology is driving productivity gains in Bangladesh RMG sector



As labour costs rise across traditional apparel manufacturing hubs, Bangladesh is apparently quietly redefining the competitive edge that once relied on cheap manpower. Long known for its vast pool of low-cost workers, the country’s garment industry appears to be shifting towards technology and automation, signalling a strategic shift from labour-intensive production to machines, data, and speed.

Bangladesh’s garment industry is increasingly adopting automation and technology.
A study showed productivity grew 4.19 per cent annually during 2014–23, with automation-intensive segments like cutting, knitting and wet processing posting the strongest gains.
As technology adoption accelerates, policymakers now face the challenge of managing labour displacement.

Though gradual, the transformation is beginning to deliver measurable results now.

Media reports citing a study by a renowned autonomous multidisciplinary research organisation of the country, underlined that Bangladesh’s readymade garment (RMG) sector—driven by automation and technological upgrades—achieved average annual productivity growth of 4.19 per cent between 2014 and 2023.

At first glance, these gains may seem modest, but they are significant in an industry that employs millions and underpins a substantial portion of the national economy.

The RMG sector contributes an estimated 8.5–10.5 per cent of GDP and generates 80–85 per cent of export earnings, making even incremental improvements economically meaningful.

However, the productivity gains have not been uniform. Jackets reportedly led the way with 6.59 per cent annual growth over the decade, followed by knit lingerie at 6.43 per cent. Sweaters (6.05 per cent), home textiles (5.58 per cent), and T-shirts (4.39 per cent) also posted solid gains, benefiting from mechanisation, standardisation, and process automation.

By contrast, woven shirts, woven trousers, and denim reportedly recorded more modest growth of 3 per cent, 1.15 per cent, and 1.81 per cent, largely due to lower levels of automation.

Meanwhile, the automation-intensive segments of the RMG sector delivered the strongest gains. Cutting, knitting, and wet processing reportedly recorded annual productivity growth of 11.13 per cent, 9.85 per cent, and 6.11 per cent, respectively. Meanwhile, sewing—the least automated and most labour-dependent stage— reportedly posted the weakest growth at 3.57 per cent, while weaving and end finishing recorded growth of 4.43 per cent and 4.78 per cent over the decade.

The impact of technology is perhaps most visible in cutting. In the 1980s and 1990s, 10–12 workers using manual tools reportedly processed 4,000–5,000 pieces a day. Today, fully automated CAD- and CNC-driven systems allow just 2–3 operators to reportedly cut up to 10,000 pieces daily—three to five times faster and markedly more precise.

The report also notes a shift in knitting from low-gauge circular machines to microprocessor-controlled equipment with CAD/CAM integration, digital design functions, and fine-gauge capabilities, even as it highlighted wider adoption of automated cutting, semi-automatic sewing heads, laser or ozone finishing, auto-dosing dyeing systems, and digital quality-control tools across medium-scale factories.

However, most critically, the study also calls on policymakers to anticipate potential labour displacement as automation deepens and to plan for it proactively. In an industry that employs millions, the central challenge will thus be to balance efficiency gains with social stability, as the garment sector moves toward a more automated future.

Fibre2Fashion News Desk (DR)



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