Darkness Looming Over Karnatakas Spinning Industry
SME spinning mills in Karnataka, which were already in jeopardy due to high cotton prices
, soaring production costs and unavailability of adequate working capital, are now in more trouble. The unscheduled power cuts for almost 12 hours in a day by the Karnataka Power Corporation Ltd (KPCL) is making it difficult for small-scale spinning units to operate at full capacity and deliver their orders on time.
Erratic power supply has been forcing SME spinning mills in Karnataka to call frequent shutdowns and resort to long breaks. Resultantly, the overall productivity is declining steadily, thereby affecting business volumes.
Power cut woes
The crippling power cut scenario is sounding a death knell for most SME spinning units in Karnataka, thereby adversely impacting the growth of the high-employment generating industry in the state.
Small textile mills in Karnataka are incurring huge losses as they are unable to deliver their products on time. As a result, most orders placed with the Karnataka SME spinning mills are getting cancelled, said Krishna Kumar Maheshwari, proprietor of Badrivishal Textiles, a small textile trading centre in Karnataka.
The Karnataka Textile Mills Association (KTMA) and the Southern India Mills Association (SIMA) have also expressed concern over the under-utilisation of capacity by some spinning mills caused by long and unscheduled power cuts.
Spinning mills require uninterrupted power supply to operate at full capacity. However, the recent order issued by the state government, stipulating power to be supplied for only 12 hours in the rural areas, has compelled a number of spinning mills to scale down their production activities. Consequently, spinning units are laying off temporary workers, leading to higher unemployment and loss of revenue to the state, said D Shankar, proprietor of Laxmi Spinning Mills, a small-sized textile mill in Ilkal, Karnataka.
Apart from frequent power cuts, high power tariffs are also making it difficult for SME spinning mills to continue production. Experts believe that mills in Karnataka will soon move to Andhra Pradesh and other regions, which is promising funding and other incentives as regards power and land, if the states apathy towards the power crunch situation continues.
by: David Parks
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