Textile and Weaving Associations in Surat Protest Newly Imposed Peak Hours Charge by Power Companies
June 22, 2025
Surat: A protest has erupted across Surat’s weaving and textile industry after power distribution companies began charging an additional ₹0.45 per unit for electricity consumed during peak hours. The move has triggered agitation among small and medium enterprises (SMEs), especially in the weaving sector, with industry leaders demanding immediate withdrawal of the decision.
The new surcharge — termed as a “time-of-use charge” — applies to electricity consumed between 7:00 am to 11:00 am and 7:00 pm to 10:00 pm, considered peak consumption hours. While this system was previously applied to large industrial units connected to high-tension lines, power companies like DGVCL have now extended the surcharge to small weaving units connected via low-tension (LT) lines, sparking outrage.
An emergency meeting was convened today by the Southern Gujarat Chamber of Commerce and Industry (SGCCI), led by Chamber President Nikhil Madrasi, Vice President and Fogwa President Ashok Jirawala, and Electricity Committee Chairman Mayur Golwala. The leaders strongly opposed the additional charges, stating they would cripple small-scale weavers already operating on razor-thin margins.
“There is no concept of peak hours in the weaving industry. We operate with a margin as low as 50 paise to ₹1 per meter,” said Jirawala. “This extra charge is unjustified and will make it impossible to compete with the subsidized textile industry of Maharashtra.”
Weaving societies questioned the logic of levying a supplementary bill on top of the standard per-unit billing. “When we are already billed for every unit consumed, what does this supplementary charge represent?” they asked. “Will the electricity company compensate us for losses during the six-month recession when looms lie idle?”
They also criticized the absence of proper infrastructure for implementing time-based billing. “No meters have been installed to track peak hour usage in LT line units,” noted Mayur Golwala, calling the provision “destructive” for micro-industries.
Industry Impact and Migration Threat
Surat, known as the textile hub of India, now faces the risk of industrial migration, with many units planning to relocate to Navapur in Maharashtra, where power subsidies make operations far more economical. “This additional cost increases production expenses and reduces our competitiveness. We are already witnessing a shift of powerloom businesses to Maharashtra,” warned Jirawala.
Golwala added, “If this decision isn’t reversed, small weaving units and related industries like embroidery and garment manufacturing will collapse, leading to widespread unemployment and economic disruption.”
With growing pressure from trade associations like FOGWA, FIAASVI, and multiple textile federations, a memorandum is being prepared for Gujarat Energy Minister Kanubhai and Additional Chief Secretary S.J. Haider. The proposal demands complete rollback of the 45-paise LT line surcharge.
“If not withdrawn, this charge could mark the beginning of the end for Surat’s small textile units,” said Golwala. DeshGujarat
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