The Tamil Nadu government’s policy adjustments relating to wind energy are intended to reduce electricity rates and enhance competitiveness in its textile and apparel industries. “The revised wind power policy by the Tamil Nadu government has provided the cost advantage that the textile and garment industries of the state need,” declared the Southern Indian Mills’ Association (SIMA) on the revisions being introduced by the government regarding wind power policies for the area.
In a press statement issued by it, SIMA said that these incentives and policy corrections will enable a higher level of uptake of green energy among textile manufacturers while it will also help the industry cope with the stress that global events in recent times have created for it. The chairman of SIMA, Durai Palanisamy, observed that “access to renewable energy has become critical to the textile industry as it is a power-intensive industry where export markets are highly volatile and compliance costs are rising.”
Tamil Nadu, being the second-largest economy in India, holds almost one-third of the total size of the nation’s business in the textile industry. Tamil Nadu provides 28 percent of the total employment in the textile business in the nation, 45 percent of spinning capacity, 22 percent of the total capacity in the power loom business, and also has a dominant position in the business of producing and exporting cotton yarns. In addition to this, more than 70 percent of the total capacity for manufacturing cotton knitted garments exists in the state of Tamil Nadu itself. The textile business plays a vital role in Tamil Nadu’s plan to create an economy of $1 trillion by the year 2030.
However, the industry is presently experiencing headwinds driven by various international factors, including tariff measures implemented by the United States, a prolonged transition from fast fashion as practiced by the European Union, and other uncertainties affecting textile industry flow, including that impacting Bangladesh.
Tamil Nadu can be cited as a pioneer in investments pertaining to wind energy since the 1990s with the help of government policies. There are a large number of aging captive windmills installed in the textile industry, which are now over 20 years of age. There has been an increase in concern raised with the repowering policy promulgated in 2025 for wind energy, which raised alarms as the banking facility is no longer permitted. Issues are raised for the textile industry as the facility is largely utilized for power. The association SIMA has urged the government to permit banking facility for older windmills with a 40-year life expectancy.
Welcoming amendments notified through the latest GO, Palanisamy said some important features involved are retaining the annual banking system, significant lowering in Infrastructure Development Charges from the erstwhile ₹30 lakh per MW over five years to ₹50,000 perMW per year during life extension/refurbishment, and easier procedures to obtain life extension certificates from chartered engineers.
These amendments will improve Tamil Nadu’s competitiveness in relation to other states in the production of textiles. Furthermore, this will also enhance Tamil Nadu’s leadership position in the uptake of renewable energy. Palanisamy also welcomed the renewal of the Power Purchase Agreements as well as the option to enter into energy wheeling agreements.
He expressed hope that the state government might go further in providing banking facilities for the captive windmills established after 2018 because this might help the power-intensive textile segment remain competitive and encourage fresh investments in the state.
