The textile industry in our country has laid out a plan for the future government, aiming to boost textile exports to $50 billion by 2029. This plan suggests some key actions to achieve this goal.
The industry is calling for Business-to-Business (B2B) power contracts with a low charge of 1-1.5 cents per unit. This involves setting up the Competitive Trading Bilateral Contracts Market (CTBCM) to make these contracts operational. There is a proposal to increase the limit on solar net-metering for industrial users from 1MW to 5MW. Net-metering allows industries to generate their own solar power and share excess energy with the grid.
The industry currently has the capacity to export goods valued at around $25 billion per year. The plan envisions doubling this capacity to approximately $50 billion per year within five years. However, this growth is contingent on attracting around $5 billion in investments, under the condition of creating a business environment free from distortions, allowing firms to compete on the global stage.
The policy document emphasizes the need for a separate power tariff category tailored for export-oriented firms. This category is intended to exclude cross-subsidies (where one group of consumers subsidizes another) and stranded costs that cannot be exported. This move aims to simplify costs for businesses focusing on exports.
The industry stresses the importance of ensuring a steady supply of Re-Gasified Liquefied Natural Gas (RLNG) or gas for captive power plants, which generate electricity for their own use. This is viewed as crucial due to the unreliability of the power sector.
The policy document advocates for providing export-oriented firms with medium-term visibility concerning energy pricing and availability. This means offering a clear understanding of energy costs and availability over a specified period, aiding firms in planning and operations
The textile industry’s plan revolves around creating a conducive environment for growth by addressing power contracts, solar energy incentives, a distortion-free business setting, and specific measures to support export-oriented businesses. These measures are designed to foster sustainable growth and enhance competitiveness in the international market.
