SIMA thanks TN CM for industry friendly wind power policy amendments

The Southern India Mills’ Association has welcomed the recent amendments to Tamil Nadu’s Wind Power Policy, describing them as timely and industry-friendly measures that will provide much-needed relief to the power-intensive textile
sector.
In a press release issued here on Tuesday, SIMA Chairman Durai Palanisamy expressed gratitude to Chief Minister M.K. Stalin for responding positively to the long-standing concerns of the textile industry.
He also thanked Electricity Minister S.S. Sivasankar, Textiles Minister R. Gandhi, Industries Minister T.R.B. Rajaa, TANGEDCO Chairman and Managing Director Dr. J. Radhakrishnan, and officials of TANGEDCO for their proactive intervention through the Government Order dated January 14, 2026.
Tamil Nadu, the country’s second largest State economy, accounts for nearly one-third of India’s textile business, 28 per cent of employment in the textile sector, 45 per cent of spinning capacity, 22 per cent of powerloom capacity, and over 70 per cent of cotton knitted garment manufacturing.
The State also holds a leading position in the production and export of cotton yarn.Palanisamy noted that while Tamil Nadu has set an ambitious target of becoming a USD 1 trillion economy by 2030, the textile sector is currently facing severe headwinds due to global tariff actions, the European Union’s shift away from fast fashion, geopolitical uncertainties and recent developments in Bangladesh.
Tamil Nadu was among the pioneers in wind energy investments from the 1990s, with many captive windmills now over 20 years old.
The earlier repowering policy, which restricted banking and evacuation facilities, had caused serious concern among textile units heavily dependent on wind power.
Welcoming the revised policy, SIMA highlighted key measures such as the continuation of annual banking, sharp reduction in infrastructure development charges from Rs. 30 lakh per MW for five years to Rs. 50,000 per MW per annum for life extension, and simplified procedures for obtaining life extension certificates.
The association said these measures would encourage greater use of green energy, ease cost pressures on textile manufacturers, enhance competitiveness against other States and reinforce Tamil Nadu’s leadership in renewable energy.
Palanisamy also welcomed the continuation of power purchase agreements and energy wheeling options, and expressed hope that banking facilities would be extended to captive windmills installed after 2018 to attract new investments and support the growth of power-intensive industries.