The Tamil Nadu government has recently amended its Repowering, Refurbishment and Life Extension Policy for Wind Power Projects to make it more industry-friendly and address concerns raised by wind energy producers.
Durai Palanisamy, Chairman of SIMA, welcomed the policy amendments vide G.O. dated 14 January 2026, and expressed his gratitude to M.K. Stalin, Chief Minister of Tamil Nadu; Sivasankar, Minister for Electricity; Gandhi, Minister for Textiles; T.R.B. Rajaa, Minister for Industries; Radhakrishnan, CMD of TANGEDCO; and the officials of TANGEDCO for their timely and proactive action.
Durai stated that the retention of the annual banking system, the substantial reduction in Infrastructure Development Charges from the earlier proposal of ₹30 lakh per MW for a period of five years to ₹50,000 per MW per annum for life extension or refurbishment, and the simplification of procedures for obtaining life extension certificates from Chartered Engineers are some of the key industry-friendly measures.
The SIMA Chairman added that these initiatives will not only enable greater consumption of green energy by textile manufacturers but will also ease the stress on the industry arising from recent global developments. He further stated that the policy amendments will strengthen the competitiveness of Tamil Nadu’s textile industry compared to other states while reinforcing the state’s leadership in renewable energy adoption.
Durai also welcomed the continuation of Power Purchase Agreements as well as the option of Energy Wheeling Agreements. He hoped that the government would consider extending the banking facility for captive windmills installed after 2018 to enable power-intensive industries like textiles to remain competitive and attract new investments.
Tamil Nadu Wind Sector
Tamil Nadu pioneered large-scale investments in wind energy due to its unique Wind Power Policies since the 1990s. Many of these windmills are currently over 20 years old. The wind repowering policy announced in 2025, which had denied banking facilities and evacuation, came as a shock for industries heavily reliant on captive wind power, posing challenges for power-intensive sectors such as textiles. The industry has continuously appealed to the Tamil Nadu government to extend banking facilities for older windmills and to increase the operational life up to 40 years for eligible turbines.
Tamil Nadu Textile Sector
Tamil Nadu, the second-largest economy among Indian states, accounts for one-third of the country’s textile business, 28% of total employment in the textile industry, 45% of spinning capacity, 22% of powerloom capacity, and holds the top position in the production and export of cotton yarn. The state also has over 70% of the country’s cotton knitted garment manufacturing capacity.
Tamil Nadu’s ambitious vision of achieving a USD 1 trillion economy by 2030 places the textile industry as a key growth driver. However, the sector is currently facing severe challenges due to multiple international developments, including tariff actions by the United States, the European Union’s gradual shift away from fast fashion, and geopolitical uncertainties affecting textile trade flows, including developments in Bangladesh.
