VIJAYAWADA: Levy of 50 per cent tariff by the US is likely to impact AP textile industry to an extent of ₹15,000 crore to ₹20,000 crore per annum. The textile sector is already seeking from the state government rebate in power tariff and incentives to sustain itself. The US tariff will render the industry unviable and throw lakhs of workers out of job.AP’s textile sector exports to the USA raw materials like yarn and finished products such as fabrics, bedsheets and garments, earning thousands of crores in rupees every year and providing employment to several lakhs of workers. With the US administration, led by President Donald Trump, imposing a 50 per cent tariff on textiles being imported, mainly from AP, commencing August 27, Indian exporters have to decide whether to continue their exports to the US despite facing high tariff or stop exports and look for alternative markets across the globe. But developing alternative export markets will take time. AP Textiles Mills Association vice president Sadineni Koteswara Rao said, “After agriculture, textile industry provides the maximum employment. We are expecting a major impact on the textile sector due to the US tariffs. The AP government will have to come to rescue by providing several incentives, including captive power and release of arrears to keep the industry viable in the state.” AP’s textile sector is already facing uncertainty. 30–35 of over 100 spinning mills have already shut down. The major reason for this is said to be the high power tariff. It used to be about ₹6.50 per unit, but went up to ₹9.50 when YSRC ruled the state. As power charges comprise nearly 53 per cent of the production cost, the textile sector is already struggling to survive. The TD-led NDA government assured to address the issue when the US dropped the tariff bomb. Stakeholders in the textile sector are appealing to the NDA coalition government in the state to revive its power tariff policy of 2015–2020. They want the state government to permit them to set up captive power plants, mainly in elevated upland areas like Kurnool and Anantapur in the Rayalaseema region, so that they can generate power to run their industries and supply excess power to the state power grid. Stakeholders further want the state government to release arrears of various incentives like power subsidy, bank loan interest subsidy and capital subsidy of ₹₹11,000 crore, so that it helps the industry to become viable. The textile industry brought these issues to the notice of Chief Minister N. Chandrababu Naidu some four months ago. Naidu had then ordered the Chief Secretary to constitute a committee to study the issue and submit a report. The committee is yet to meet the stakeholders within the textile industry.
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