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Time of India
11-07-2025
- Business
- Time of India
32,000 MSMEs get backdated electricity shock
Surat: In a development affecting more than 32,000 micro, small and medium enterprises (MSMEs) in South Gujarat, businesses were hit with additional electricity charges for the past 12 months. Tired of too many ads? go ad free now Industry sources say these charges will total Rs 60 crore and will affect textile units running operations such as weaving, rapier jacquard, embroidery and other industries that use low-tension maximum demand (LTMD) connections. The additional fees stem from peak hour charges, calculated at 0.45 paisa per unit above regular rates. According to DGVCL officials, the average supplementary bill amount is Rs 18,750, to be recovered from 32,000 users. Sources in industry said many users received supplementary bills for more than Rs 40,000. The delay in billing arose because Dakshin Gujarat Vij Company Ltd (DGVCL) did not previously calculate peak hour charges, as the mechanism to collect time data on electricity consumption was not in place. DGVCL started installing new meters and upgrading its IT infrastructure to address this gap. The designated peak hours, according to DGVCL, are from 7am to 11am and 6am to 10pm. Textile units, which typically operate round the clock, are particularly affected, receiving substantial bills for peak hour usage. Conversely, units that do not operate during these hours have to pay less. DGVCL officials said they are complying with directives from the Gujarat Electricity Regulatory Commission (GERC), which mandated the collection of these charges starting June 2024. "We could not collect the peak hour charges earlier as the system was not in place. Tired of too many ads? go ad free now The meter configuration and IT system upgrade took time," said a DGVCL senior official. Following appeals by the Southern Gujarat Chamber of Commerce and Industry (SGCCI) to cabinet minister for energy Kanu Desai, the govt has allowed businesses to pay these charges in instalments without interest. "The minister tried to find a solution, but due to the GERC order, it cannot be reversed. Textile units are the most affected as we operate 24 hours," said Ashok Jirawala, vice-president of SGCCI. "The govt heard us positively and offered solutions, but the issue would not have been created if DGVCL had taken prompt action a year ago. The produced material has already been sold according to the cost calculated then, and in many cases, tenants have vacated rented units, so how does one recover the additional electricity charges," said Mayur Golvala, secretary, Sachin Industrial Co-Op Soc. "There must be a consistent policy related to industries so that we can focus on production and global competition. If we are affected by such unpredictable developments, it becomes difficult to operate," said Chetan Maniya, president of Rapier Jacquard Weavers Association. The rationale behind the peak hour tariff is to incentivise electricity use during periods of higher solar power production, typically the afternoons, thereby reducing reliance on conventional power sources during peak demand.
Time of India
21-06-2025
- Business
- Time of India
SGCCI submit demands related to QCO
Surat: In a meeting with senior officials of the textile ministry in New Delhi, various demands related to the quality control order (QCO) were discussed by officials of the Southern Gujarat Chamber of Commerce and Industry (SGCCI). The meeting was organised by the ministry, and various stakeholders were invited to discuss issues. The meeting was chaired by the commissioner of textile, M Beena. Representatives from textile machinery manufacturers and user industries from across India, the Confederation of Indian Textile Industry (CITI), SGCCI, and others were present at the meeting. SGCCI was represented by vice president Ashok Jirawala, former presidents Vijay Mewawala and Ashish Gujarati, who submitted recommendations. It was suggested to the ministry that Europe, China, and Japan are the global leaders in textile machinery. To develop the textile machinery industry in India, it is necessary to study two factories each from Europe and China, and one from Japan. The study should cover how these manufacturers determine parameters for textile machinery design, the standard operating procedures they follow for manufacturing, the kind of facilities and locations they have for making machine components, if they have intellectual property protection for their sub-assemblies and components, and whether they have in-house laboratories to test machine performance parameters. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Neues Produkt hilft tausenden Deutschen bei Gelenkschmerzen Medizinmonitor Jetzt lesen Undo SGCCI suggested forming a task force to conduct this study, which should include members from the user industry as well. Additionally, to reduce the import of textile machinery, the SGCCI submitted suggestions that 100% Foreign Direct Investment (FDI) approval should be given to top-level global original equipment manufacturers to start manufacturing in India. The central govt should formally invite them. SGCCI further suggested a production-linked incentive scheme should be introduced specifically for textile machinery manufacturing. Research and development facilities of large Indian companies should be leveraged to design world-class textile machinery in India. Manufacturing should take place through joint ventures with Surat's textile manufacturers. GST on textile machinery should not exceed 12%. Regarding impact assessment, the SGCCI stated that any funds utilised for the development of textile machinery in India should be evaluated by comparing the value of machinery developed domestically and the subsequent reduction in imports against the funds spent.
Fibre2Fashion
27-05-2025
- Business
- Fibre2Fashion
India's loom QCO faces industry pushback ahead of deadline
India is set to implement the Quality Control Order (QCO) for weaving machines (looms), their assemblies, sub-assemblies, components, and all types of embroidery machinery from August 28, 2025, following the expiry of a one-year gestation period. Just three months ahead of implementation, the Southern Gujarat Chamber of Commerce and Industry (SGCCI) has demanded the removal of the QCO. It is worth noting that a notification was issued on August 28, 2024, regarding the implementation of the QCO on textile and embroidery machines and their components. The government had provided a one-year period for the industry to make the necessary preparations. India plans to enforce QCO on weaving and embroidery machines from August 28, 2025. The SGCCI has urged the government to withdraw the QCO, citing heavy reliance on imported machinery and potential financial losses. SGCCI argues that the regulation could hinder the textile sector's growth and technological advancement, particularly as India targets a $350 billion market by 2030. Recently, SGCCI vice president Ashok Jirawala and former president Ashish Gujarati presented the matter in a meeting with India's Minister for Heavy Industries, H D Kumaraswamy, and joint secretary Vijay Mittal in New Delhi. They pleaded for the removal of the QCO. The meeting was convened by the Ministry of Heavy Industries and attended by various industry organisations. SGCCI has formally urged the central government to remove the QCO from textile machinery, citing concerns about its potential impact on the sector's growth and technological progress. SGCCI representatives argued that India's current textile market is valued at $165 billion and is projected to reach $350 billion by 2030. To achieve this target, the industry will need approximately 4.5 lakh high-speed weaving machines, requiring an estimated investment of $15 billion. As several of these machines are not manufactured in India, imports are essential. SGCCI also noted that embroidery technology evolves rapidly, with machinery often needing upgrades every two to three years. Since many advanced machines are not produced domestically, Indian entrepreneurs rely heavily on imports. They, therefore, emphasised the need to exclude embroidery machinery from QCO regulations. Gujarati told Fibre2Fashion , 'Such textile machinery imports are essential as several types of machines are not manufactured locally. We are heavily dependent on imported machines. A large number of textile units have opened Letters of Credit (LCs) and booked machines from abroad. If the QCO is not removed and comes into effect on August 28, 2025, the imported machinery will be held at ports, resulting in significant financial losses. Furthermore, banks may hesitate to finance such ventures, potentially slowing industrial growth.' Gujarati further informed that following the presentation, Kumaraswamy and the joint secretary of the ministry responded positively and assured that the concerns of the user industry would be considered. Fibre2Fashion News Desk (KUL)
Time of India
26-05-2025
- Business
- Time of India
SGCCI seeks removal of QCO on textile machinery
Surat: Representatives from the South Gujarat Chamber of Commerce and Industry (SGCCI) recently raised concerns over the Quality Control Order (QCO) on textile machinery before the Union minister of heavy industries, H D Kumaraswamy, and senior officials of his ministry in New Delhi. SGCCI demanded the removal of the QCO on textile machinery, claiming it would adversely impact growth in South Gujarat. SGCCI representatives pointed out that the current size of the textile market is $165 billion, and it is expected to grow to $350 billion by 2030. For this growth, about 450,000 high-speed weaving machines will be required, necessitating an investment of $15 billion in machinery. Since some of this machinery is not manufactured in India, SGCCI gave a list of such machinery to the ministry. SGCCI emphasised that decisions regarding the QCO on textile machinery should be reconsidered with consultation from user industries. SGCCI vice-president-elect Ashok Jirawala said: "In the embroidery industry, each unit operates multiple embroidery machines. Every two to three years, new technology emerges, necessitating the replacement of old machines. However, these machines are also not manufactured in India, hence the industry depends on imports. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like MBA in Business Analytics For Working Professionals. BITS Pilani WILP Apply Now Undo Therefore, a request was made to remove the QCO on embroidery machinery as well." The representatives pointed out that that many entrepreneurs had booked machines on a letter of credit and if these machines are delivered after Aug 28, 2025, their payments may get blocked, and the machines will not be cleared at ports. On one hand, entrepreneurs face blocked funds, and on the other, banks are reluctant to finance new weaving projects because modern weaving machinery still needs to be imported. Therefore, a renewed consultation with user industries regarding the QCO on textile machinery was demanded.
