Tamil Nadu textile industry seeks modernization and support

As Tamil Nadu readies a new textile policy, industry stakeholders are appealing for state support to modernize aging powerloom units. Many powerlooms need upgrades or retrofitting to maintain competitiveness, according to local industry associations.

Key issues raised include financial aid for modernization and tackling waste from Common Effluent Treatment Plants. Rising electricity costs, now at Rs 9.5 per unit, were also highlighted as a major burden for mills.

The Tamil Nadu Department of Handlooms, Handicrafts, Textiles, and Khadi recently held discussions with industry leaders in Chennai. Officials confirmed that the new policy would address industry needs and build on the 2019 framework. The policy aims to support units with turnover below Rs 50 crore in the man-made fibre sector, with plans to establish 10 mini textile parks and an integrated park near Salem pending Central approval.

Tiruppur, a significant apparel hub with an Rs 35,000 crore export business, is positioned to lead on Environmental and Social Governance (ESG) practices, expected to drive future investment. However, regional associations, including the Southern India Mills’ Association, warn of a downturn if Tamil Nadu fails to adopt investment-friendly policies akin to states like Gujarat and Maharashtra. Currently, only 60 percent of Tamil Nadu’s textile mills are operational.