Business

India: SIMA’s Rs 12.50 bln captive power plant proposal for TN textile mills

The Southern India Mills’ Association (SIMA), an industrial body of textile mills in south India, has submitted a proposal to the Union Government for a 250 MW power plant for mills in Tamil Nadu.

The association’s newly elected chairman T. Rajkumar said that the power requirement by textile mills in the state is nearly 1,000 MW. The mills are the largest consumers of grid power in the State, which has been facing power shortage for the last four years. The association has submitted a Rs 12.50 billion project proposal to the Centre. According to the proposal, the mills will contribute 50 percent equity and the central government will give another 30 percent as a grant.

With regard to a textile processing park that the association had mooted nearly nine years ago and for which infrastructure works started two years ago, M. Senthil Kumar, SIMA’s deputy chairman, said that 40 percent of the works were over. There were delays because of several reasons and the association was hopeful of units commencing operation at the park next year. The Rs 6 billion project at Cuddalore was expected to be commissioned in 2013.