Spinning mills in Tamil Nadu propose to approach National Thermal Power Corporation (NTPC), India’s biggest, state-held energy conglomerate, to create solar power capacity of 100MW.
Economic Times has reported that Tamil Nadu-based entrepreneurs in the segment are preparing a pitch document to be submitted to NTPC for the purpose.
According to forums representing the spinning mills, the textile sector should have a potential requirement of 500 mw of energy in the near future.
And that would translate into an investment potential of about Rs 2,750 crore.
For now, though, the 100mw proposed could also help the public sector company take its initial step toward achieving its own target to develop 15gw of solar capacity.
In February, NTPC obtained Cabinet approval for capacity addition of 15gw in solar power.
Once the target is achieved the total solar energy output will increase from the current 3.38gw to 100gw in due course.
Already a section of spinning mills in Tamil Nadu has made substantial investments in renewable energy projects, particularly wind. Such projects have been helping the mills meet a good part of their energy requirements.
However, a larger section of textile enterprises that includes weaving and garmenting still depends on the grid to meet its power requirements.
Prabhu Damodaran, the secretary of Texpreneurs Forum has told ET that the entrepreneurs were planning to approach NTPC for such a project not only to solve their energy problems but also to ensure long-term income.
Texpreneurs of Tamil Nadu had shown limited interest in solar power projects. Companies such as Loyal Textile Mills (3.3-mw solar farm and 100-kW rooftop unit), KG Fabriks (1mw) have opted for solar energy projects.
However, NTPC will take its time to decide whether it would collaborate with spinning mills on the project.
Experts believe NTPC will be interested in the project only if it can find the necessary infrastructure and customers with strong financial backing.
Ajith Kumar S