The textile industry in the country has set an ambitious target of achieving $50 billion in textile exports by 2029. To achieve this goal, the industry has outlined a comprehensive policy roadmap for the future government, highlighting key areas that require attention and support.
One of the key recommendations in the roadmap is the facilitation of B2B power contracts with a wheeling charge of 1-1.5 cents per unit through the implementation of the Competitive Trading Bilateral Contracts Market (CTBCM). This move will not only help reduce the cost of electricity for the industry but also ensure a reliable and uninterrupted power supply, which is crucial for the smooth functioning of textile manufacturing units.
Another important recommendation is to raise the cap on solar net metering for industrial consumers from 1MW to 5MW. This will encourage textile manufacturers to invest in renewable energy sources, such as solar power, and reduce their reliance on conventional energy sources. Not only will this help the industry become more sustainable, but it will also contribute to reducing carbon emissions and mitigating the impact of climate change.
Currently, the textile industry has an export capacity of $25 billion per year. With the right support and a distortion-free business environment, the industry believes it can double its export capacity within five years. However, this growth is contingent on approximately $5 billion in investments, both from the government and private sector.
To attract these investments, the policy roadmap emphasizes the need for a distinct power tariff category for export-oriented firms. This category should be free from cross-subsidies and stranded costs, ensuring that textile manufacturers have access to affordable and competitive electricity prices. Additionally, the industry is also seeking a reliable supply of RLNG/gas for captive power plants and medium-term visibility in pricing and availability.
Creating a favorable business environment for the textile industry is crucial not only for achieving the export target but also for generating employment opportunities and driving economic growth. The textile sector is one of the largest employers in the country, providing jobs to millions of people, especially in rural areas. By supporting the industry’s growth, the government can contribute to poverty alleviation and inclusive development.
In conclusion, the textile industry has set an ambitious target of $50 billion in textile exports by 2029. To achieve this goal, the industry requires the support of the upcoming government in implementing key policy measures, such as facilitating B2B power contracts, raising the cap on solar net metering, and creating a distinct power tariff category for export-oriented firms. By providing the necessary support, the government can help the industry double its export capacity, generate employment opportunities, and drive economic growth.