SIMA thanks Tamil Nadu CM for the industry friendly Wind Power Policy
Durai Palanisamy, SIMA Chairman
India’s second largest State economy and the country’s premier textile hub—contributes nearly one-third of the nation’s textile business size, accounting for 28% of total employment in the sector, 45% of India’s spinning capacity, 22% of powerloom capacity, and over 70% of the cotton knitted garment manufacturing base. Its vision to develop into a USD 1 trillion economy by 2030 places textiles among the State’s most critical industrial growth engines.
In recent times, however, global textile trade has been shaped by shifting tariff regimes in the United States, changing consumer trends in the European Union, geopolitical uncertainties in South Asia, and evolving industrial policies in Bangladesh—all contributing to a challenging business environment for Tamil Nadu’s export-oriented textile ecosystem.
Tamil Nadu has historically led India’s renewable energy footprint, especially in wind power. Pioneering policy support since the 1990s enabled industries—particularly the power-intensive textile sector—to invest heavily in captive wind generation. But with many installations now over two decades old, the 2025 Wind Repowering Policy—initially denying banking and energy evacuation—created serious operational concerns for the industry.
Responding to sustained industry representations, the Government of Tamil Nadu has now issued progressive amendments via G.O dated 14 January 2026, marking a significant policy shift. In a statement, SIMA Chairman Mr. Durai Palanisamy expressed deep appreciation to the Hon’ble Chief Minister Thiru M.K. Stalin and the State’s leadership in Energy, Textiles, Industries and TANGEDCO for their timely responsiveness.
The revised framework reinstates annual banking for eligible windmills, drastically reduces Infrastructure Development Charges from the previously proposed ₹30 lakh per MW for five years to ₹50,000 per MW per annum for life-extension/ refurbishment, and simplifies certification procedures through Chartered Engineers. These measures, according to SIMA, reaffirm Tamil Nadu’s commitment to green manufacturing and competitive industrial energy access.
SIMA notes that the strengthened wind policy will not only enable higher renewable energy consumption by textile mills but also ease operational stress arising from global market uncertainties. It will enhance Tamil Nadu’s cost-competitiveness relative to other Indian textile clusters while reinforcing its national leadership in renewable energy adoption.
The Association also welcomed the continuation of the Power Purchase Agreement mechanism and the option to wheel energy, while reiterating its request for banking benefits to be extended for captive windmills commissioned after 2018. Such an extension, SIMA believes, would further attract fresh investments and enable the textile industry to retain global competitiveness in a period of intensive trade realignment.
