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Mills' body plea to Andhra Pradesh Government

Staff Reporter

COIMBATORE: The Southern India Mills' Association has appealed to the Andhra Pradesh Government to exempt textile mills in the State from power cuts.

In a memorandum to the Andhra Pradesh Chief Minister, association chairman S.V. Arumugam said textile mills were encouraged to set up units in Andhra Pradesh as per the AP Textile and Apparel Policy 2005-2010. Based on this, the association had taken the initiative to establish an integrated textile park at Naidupet.

Mr. Arumugam said recent press reports revealed "there is an imposition of undeclared power cut of over four hours a day in Andhra Pradesh."

Power cost constituted more than a third of the total conversion cost for the spinning mills. The power cuts would "de-motivate industrialists coming forward to invest in Andhra Pradesh."

Further, the 4 per cent Central Sales Tax on cotton yarn affected the scope of inter-State sale of cotton yarn, thus hitting manufacture too. Hence, the Andhra Pradesh Government should reduce the sales tax on inter-State sale of cotton yarn to 2 per cent with C form, said Mr. Arumugam.

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