CHENNAI: The Apparels and Handloom Exporters Association (AHOA) has urged the State Government to slash the electricity tariff by one-third to bail out apparels and textiles units hamstrung by the rupee appreciation against the dollar.
Addressing reporters here on Friday, association president Ranjit P. Shah said power was being supplied to these units at a commercial tariff of Rs.6.10 a unit instead of the industrial tariff of Rs.4.10.
The association wanted a small cut in the tariff to help these units compete with China and Bangladesh.
Labour cost
“We are fighting with our neighbours on the cost factor for long, but the rupee appreciation has added to our woes. The labour cost in our country is high, and the cost of production has also gone up owing to several factors. It is also difficult to get labourers. In this context, we are seeking concession linked to our production cost,” Mr. Shah said. Most of their problems would be sorted out if they established their units in the Special Economic Zone, Mr. Shah said. But it would take some more time as the proposed SEZ lacked common infrastructure, he said.
Tax concessions
“Till such time, we are requesting the Centre to create a level playing field by providing 100 per cent exemption of service tax for all services, tax concessions at least for three years, relief in IT for the employer and refund of service tax,” he said.
Level playing field
“We are not afraid of competing with Chinese companies, but with China’s government. All that we are asking for is a level playing field…,” said general secretary K. Reshma Rao.
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