Maharashtra govt abolishes 3% power subsidy to large powerlooms

The Maharashtra government used to give relief of ₹150 crore every year in the form of 3 per cent subsidy to more than 10,000 powerlooms. According to Textile Commissioner Sheetal Teli Ugale, it was found that some powerloom operators were doing other work with the electricity connection given for running powerloom units. So, all units were mandated to submit documents and information related to electricity consumption, textile production and sale through an online portal.

According to the rule implemented in June 2020, powerlooms with load more than 27 HP were mandated to furnish the information. But only 970 cotton mills and processing units submitted the documents and information. Subsequently, the Textile Commissioner asked the discom Mahavitaran to send electricity bills without subsidy in the last month of previous year. However, the voice of protest became louder only after the bills without subsidy were distributed in the state by Mahavitaran and its franchisees.

Powerloom operators in Ichalkaranji, Bhiwandi, Malegaon and Solapur—the major textile industry hubs of the state—said that it will make running powerlooms more difficult. Industry associations said that powerlooms will be on the verge of closure due to higher cost of production due to abolition of power subsidy. Heavy electricity bills have become a serious challenge for the powerlooms at a time when they were already facing problems amid high cotton prices and weak demand.

An industry body of Ichalkaranji said that the industry is already upset with the electricity charge being hiked by ₹1.20 per unit. Maharashtra’s finance minister Ajit Pawar had assured that the price hike would be reduced to ₹0.75 per unit. But even after two years the assurance is yet to see the light of the day.

Regarding the new rule, the organisation said that the Department of Textiles has asked to upload several years and several decades old invoices, which was troublesome for the industry.

Purushottam Vanga, president of Bhiwandi Padmanagar Powerloom Weavers Association, told Fibre2Fashion that the abolition of electricity subsidy will increase the electricity bill of powerloom operators who are currently facing dual challenge of weak demand and unusual surge in cotton prices.

ALCHEMPro News Desk (KUL)