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Saturday, 03 October 2026 15:30

Uninterrupted power demands intensify as spinning mills confront escalating diesel generation costs

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India's textile and apparel value chain is facing severe operational hurdles as high-tension industrial power restrictions compel spinning mills to rely heavily on expensive diesel generators.

Industry bodies have formally urged state utilities to reinstate continuous round-the-clock electricity supplies, warning that erratic grid stability severely compromises productivity across yarn and fabric processing units.

The crisis intensified after regional distribution companies advised high-tension consumers in major manufacturing hubs to throttle grid consumption during peak hours. In a capital-intensive and power-reliant sector like textiles, maintaining continuous energy flows is critical to fulfilling tight export delivery schedules and retaining global competitiveness.

Escalating expenses strain downstream processing

Operating heavy-duty spinning frames and automated weaving looms on diesel backup generators dramatically inflates per-unit production expenses, eroding already narrow operating margins for mill owners. Industry participants highlight, unexpected power cuts disrupt continuous chemical processing lines and yarn drawing operations, leading to high material wastage.

Relying on high-cost auxiliary power solutions heavily distorts cost structures, making it difficult for domestic mills to match international pricing for finished fabrics, notes S Prabhu, General Secretary, Regional Spinning Association. Sector analysts emphasize, collaborative policy measures involving state energy boards and industrial stakeholders are urgently required to shield manufacturing clusters from severe financial attrition.