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News from the Ministry of Textiles (MoT), Govt. of India

Indias Share in Global Textile Market
As per data released by WTO Secretariat for the calendar years 2009, 2010 and 2011, the share of Indian textiles and clothing exports in worlds export were 3.98%, 3.98% and 4.11% respectively. The Government has made various policy interventions to increase the Indian share in global trade and to increase annual production of textile goods including the schemes like Technology Upgradation Fund Scheme, Scheme for Integrated Textiles Park, Integrated Skill Development Scheme and Integrated Processing Development Scheme. The Ministry of Textiles has been in receipt of representations from various Councils and Industry Associations including SIMA and CITI for policy support. The recommendations of the Ministry of Textiles on the proposals have been sent for consideration/inclusion in Foreign Trade Policy and Budget 2014-15. The above information was given by the Minister of State in the Ministry of Textiles Smt. Panabaaka Lakshmi in a written reply in the Rajya Sabha. Apparel/Textile Sectors The role of the Government is to ensure conducive policy environment, facilitating in creating enabling conditions for the industry and private entrepreneurs to set up units through policy initiatives and schemes. Some of the schemes / measures are Technology Upgradation Fund Scheme (TUFS), Scheme for Integrated Textile Parks (SITP), Integrated Skill Development Scheme and Schemes for the development of the Powerloom Sector. The Govt. has not fixed any production target for textile items including fabrics/apparel. However, the Working Group on Textile and Jute Industry for Twelfth Plan made the projection for production of cloth by mill, powerloom, handloom, hosiery, etc. during Twelfth Five Year Plan. Reform and Restructuring (RRR) Package' was approved by the Government in November, 2011 and only viable and potentially viable apex and Primary Weavers Cooperative societies (PWCs) based on the audit of 2009-10 were eligible to avail benefit. Till 31.10.2013, besides 50403 individual weavers and 5462 Self Help Groups (SHGs), out of 44 apex and 15,926 PWC societies, which are functional, only 24 apex and 4073 PWCs were found eligible as per the eligibility norms under the scheme. On requests from various States and handloom organizations to relax eligibility norms, the Government of India approved modifications on 23.09.2013 in the RRR package by relaxing certain eligibility norms and extension of the scheme upto 31.12.2013. The revised scheme also facilitates cheaper credit at the rate of six percent interest rate to the handloom sector in line with the budget announcement of 2013-14. As per modified guidelines, States had to first carry out statutory audit of all their apex and PWC societies up to 2011-12 and also make budgetary provision of the required State share. Till 31.12.13, around 4739 cooperatives have been covered. Due to the State Assembly Elections in five states, the statutory audit of apex and PWC societies and subsequently special audit by NABARD has been delayed. These states need additional time for completion of the audit. Some other states also could not complete the statutory audit of cooperative societies within 31.12.13 and demanded one more month to complete the work. Therefore, the Ministry proposed to extend the last date of implementation of the RRR package by another 2 months.

Extension in the implementation period of modified revival, reform and restructuring package for handloom sector
The Cabinet Committee on Economic Affairs has approved the extension of two months that is up to 28.02.2014 in the implementation period of the Revival, Reform and Restructuring (RRR) package for the handloom sector. Earlier the last date of implementation period of this scheme was 31.12.2013. There is no financial implication of the proposal as the RRR package would be implemented according to the approved financial outlay of Rs.3130 crore out of which Rs.1100 crore is for waiver of overdue loan and recapitalization assistance and Rs. 2030 crore for concessional credit component. The initiative is expected to benefit about 1500 additional apex and primary weavers cooperative societies in addition to 4739 societies covered till 31.12.2013 under modified RRR package. The approved interventions will help in re-opening choked credit lines for handloom weavers cooperative societies and the individual weaver, and fresh credit will be provided at cheaper rate of interest with credit guarantee resulting in bringing them back into positive networth after financial support. NABARD is the implementing agency of the package. Background : In pursuance of the budget announcement of 2011-12, a scheme - 'Revival, NCM-FEBRUARY 2014 88

Share of Technical Textile in all Forms of Textiles

The share of technical textiles in all

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forms of textiles world over is 18.70% whereas the share of technical textiles in India is 11.43%. The Government of India, Ministry of Textiles has taken several steps for the growth and development of technical textiles by which the share of Indian technical textiles will improve. Some of the main steps are as follows : Scheme for Growth and Development of Technical Textiles (SGDTT): This scheme was launched for tapping the potential of technical textiles and to encourage investments in this industry, during the year 2007-08 with an outlay of Rs. 46.60 crore. It had three components namely Baseline Survey, Creation of Awareness and Setting up of four Centres of Excellence. . The scheme completed its tenure in the year 2010-2011. Technology Mission on Technical Textiles (TMTT) : Government has launched the Technology Mission on Technical Textiles with two Mini Missions for five years starting from the year 2010-11 with an outlay of Rs. 200 crore. The main objectives of the scheme include standardization, creating common testing facilities with national/international accreditation, indigenous development of prototypes and resource center with I.T. infrastructure and support for domestic & export market development of technical textiles etc. Formulation of special schemes for the North East Region for demonstrating improvement in agriculture & infrastructure through the increased usage and promotion of Agro and Geo Technical Textiles, respectively. Major machinery for manufacture of technical textiles has been covered under Technology Upgradation Fund Scheme (TUFS) with 10% capital subsidy in addition to 5% interest reimbursement to the specified technical textile machinery. Under the Scheme for Integrated Textile Parks (SITP), the Government provides assistance for creation of infrastructure in the parks to the extent of 40% limited to Rs.40 crore in which technical textile units can also benefit. The major machinery for production of technical textiles is covered in the concessional customs duty list of 5%. Specified technical textile products are covered under Focus Product Scheme. Under this scheme, exports of these products are entitled for duty credit scrip equivalent to 2% of FOB value of exports. such as captive power generation plants on technology preferably renewable/green technology, Group C Common facilities such as Testing Laboratories and R&D centers. Government of India grant will be mandatory for Group A only. The Government of India grant shall not be used for procurement of Land.The land will be purchased/arranged by the SPV. The cost of land will not be part of the total project cost. The scheme would also be applicable for Technology up-gradation and capacity enhancement of the above mentioned facilities in existing Textile Clusters. The details of the facilities and incentives being offered to the projects considered under this scheme are as under : The Special Purpose Vehicle shall fund the project through a mix of equity from members of industry, grant support from Ministry of Textile / State Government, and the loan from Banks and Financial Institutions. The Government of India support under the scheme by the way of grant would be limited to 50% of the project cost, with a ceiling of Rs.75 crore for projects with Zero Liquid Discharge Systems and Rs.10 crore for projects with conventional treatment systems. Support for marine discharge projects would be analyzed on a case to case basis with a maximum ceiling of Rs.75 crore. The project cost shall be borne by the Center, State, Beneficiary, Bank loan in the ratio of 50:25:15:10 respectively. The information was given by the Minister of State in the Ministry of Textiles Smt. Panabaaka Lakshmi in a written reply in the Rajya Sabha.

The information was given by the Minister of State in the Ministry of Textiles Smt. Panabaaka Lakshmi in a written reply in the Rajya Sabha.

Launching of Integrated Processing Development Scheme (IPDS)

The government has approved the launching of a new Integrated Processing Development Scheme (IPDS) to establish four to six Brown Field projects and three to five Green Field projects with a total cost of Rs. 500 crore to address the environmental issues faced by the textile processing units. The scheme will provide government support for establishing common infrastructure to catalyse private sector investments in the major processing clusters. The scheme parameters envisage Government support limited to 50% of the project cost with ceiling limit of Rs.75 crore. The projects under the scheme would cover the following : Group A Water treatment & effluent treatment plant and technology (including marine, Riverine and ZLD). Group B Common infrastructure NCM-FEBRUARY 2014 89

Setting up of Warehouses in Latin America

The Export Promotion Council for

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Handicrafts (EPCH) had submitted a proposal for setting up of Warehouse/ Showroom in Uruguay with a funding of Rs.56.50 crore over a period of six years under MAI/MDA scheme. The proposal was recommended by Ministry of Textiles to Department of Commerce. The Department of Commerce has informed that the proposal could not be considered due to paucity of allocated budget by Ministry of Finance/Planning Commission. The information was given by the Minister of State in the Ministry of Textiles Smt. Panabaaka Lakshmi in the Lok Sabha. Table 1 : Statement showing State-wise funds released and beneficiaries covered in Clusters taken up so far S. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Name of the State Amount released No. of Beneficiaries (Rs.in lakh) covered 925.58 283.23 232.19 16.83 24.94 17.25 199.61 329.67 1014.53 626.62 662.72 347.58 111.00 1047.36 0.00 83.42 1420.11 1184.62 306.55 962.47 9796.27 5415 369 739 0 0 332 1397 1250 3107 4792 0 635 2515 2073 0 1118 3777 2343 1322 1752 32936

Andhra Pradesh Bihar Chhattisgarh Delhi Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Orissa Punjab Rajasthan Tamilnadu Uttar Pradesh Uttarakhand West Bengal Total

Handloom Clusters
The Government of India, Ministry of Textiles, Office of the Development Commissioner for Handlooms has taken up 613 handloom clusters, each having 300-500 handlooms for their integrated and holistic development in various States under Integrated Handlooms Development Scheme (IHDS) during XI Plan and 2012-13 & 2013-14 (till December 2013). Besides, 20 clusters, each having about 5000 handlooms have been taken up. Further, 6 mega handloom clusters, each having atleast 25000 handlooms have been taken up. In these clusters, financial assistance has been extended to benefit the weavers towards various inputs like margin money, new looms and accessories, skill up-gradation, design development, corpus fund for yarn supply, upgradation of handlooms, setting up of Common Facility Centre/Dye house, marketing, construction of Worksheds etc. A new Scheme Comprehensive Handlooms Development Scheme (CHDS) has been recently introduced, which provides for taking up new clusters, each having 200-500 handlooms and 2000-5000 handlooms to be developed in a time period of 4 years. The scheme has several components and therefore, based on the receipt of viable proposals and availability of funds, financial assistance

NER 1 2 3 4 5 6 7 8 Arunachal Pradesh Assam Manipur Meghalaya Mizoram Nagaland Sikkim Tripura Total Grand Total 546.38 1223.66 1932.84 267.94 76.75 1288.46 0.00 525.23 5861.26 15657.53 2500 11663 15276 620 371 6000 0 2077 38507 71443

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is released to the Implementing Agencies through the State Government concerned. A statement showing State-wise funds released and number of weavers benefited during the last 3 years and current year (upto January 2014) is given in the Table 1. Handloom clusters have been taken up in different years of XI Plan and current Plan, of which some have been fully implemented while remaining are in different stages of implementation. Independent evaluation of the Cluster Development Programmes has revealed positive outcomes in terms of increase in productivity, increase in income, increase in number of working days etc. other schemes, such as, Group Insurance Scheme (GIS), Group Workshed Scheme (GWS) etc., are being implemented for the welfare of the powerloom weavers/ entrepreneurs in the entire country and their condition is improving. The Government is providing financial assistance to powerloom weavers including minority community engaged in Textile Industry including backward regions of various parts of the country including Uttar Pradesh in the following forms: Of the total premium of Rs. 470/- per weaver for Group Insurance Scheme, Rs. 290 are borne by Government of India and Rs. 100/- paid from the Social Welfare Fund. The contribution of powerloomwaever/worker is Rs. 80/only for one year. Subsidy is provided to powerloom weavers for construction of loom-shed under the Group Workshed Scheme. Rate of subsidy has now been increased to Rs. 300/- per sq. foot as against Rs. 160/- per sq. ft. Re-imbursement of actual to & fro train fare in sleeper class plus incidental expenses of Rs. 2000 per weaver is provided by the Government for exposure visit of powerloom weaver from his cluster to the place of developed powerloom cluster. During the past 6 years, 29977 powerloom weavers were taken to developed powerloom clusters and Rs. 74 lakh was paid towards incidental expenses. Financial assistance is provided by the Government for conducting BuyerSeller Meets (BSM) for marketing their products under a common platform thereby eliminating middlemen and establishing direct business network with the buyers. Scale of assistance ranges from Rs.5 lakh to Rs.15 lakh for 5 days per event depending upon the class of cities. During the past 7 years, 69 Buyer Selleer Meets were conducted for which GOI released Rs. 4.88 crore. NCM-FEBRUARY 2014 91 Powerloom weavers/entrepreneurs are given increased benefits Under Technology Upgradation Fund Scheme. The interest subsidy has been raised from 5% to 6 % and Capital subsidy has been increased from 10% to 15% in the 12th Plan. Margin Money Scheme for powerlooms under MSME sector has also been increased from 20% to 30%. More than Rs. 409 crore has been released as subsidy to small pwerloom weavers/entrepreneurs under Technology Upgradation Fund Scheme. New Schemes are also launched from this year for welfare of the powerloom weavers/entrepreneurs for implementation during the 12th Plan period. This includeHelath Insurance Scheme for powerloom weavers, InsituUpgradation of plain powerlooms, Hire-purchase for powerlooms weavers/entrepreneurs, Yarn Bank Shceme, Common Facility Centre and Tex-Venture Capital Fund. Budget provision for all ongoing powerloom sector schemes has been increased substantially for the 12th plan period. As against Rs. 66.51 crore for allocated for the 11th plan period, the plan outlay for the 12th Plan period is Rs. 335 crore for the powerloom sector Schemes. In so far as handloom sector is concerned, various schemes viz. Integrated Handloom Development Scheme (IHDS), Marketing and Export Promotion Scheme (MEPS), Handloom Weavers Comprehensive Welfare Scheme, Mill Gate Price Scheme (MGPS), Diversified Handloom Development Scheme (DHDS) and Revival Reform and Restructuring Package (RRR) are being implemented for the welfare of handloom weaves including minority community. Financial assistance under Integrated Handlooms Development Scheme (IHDS) and Marketing and Export Promotion Scheme (MEPS) is released to the States Governments including Uttar Pradesh, while funds under other

Welfare of Textile Workers

Handloom weavers face hardships/ constraints primarily due to stiff competition from powerloom& mill sector, low productivity, limited scope for technological up gradation, inadequate credit availability at reasonable rate of interest and marketing facilities. However, various schemes viz. Integrated Handloom Development Scheme (IHDS), Marketing and Export Promotion Scheme (MEPS), Handloom Weavers Comprehensive Welfare Scheme, Mill Gate Price Scheme (MGPS), Diversified Handloom Development Scheme (DHDS) and Revival Reform and Restructuring Package (RRR) are being implemented for the welfare of handloom weaves and their condition is improving. Powerloom weavers also face hardships due to technological obsolescence, lack of continuous power supply, inadequate credit flow at reasonable rate of interest, shortage of skilled manpower etc. Out of 23 lakh powerlooms in the country, only 1.15 lakh looms are shuttleless looms. In order to improve the technology level of the powerloom sector, Technology Upgradation Fund Scheme is implemented with more focus on powerloom sector. Besides, various

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schemes are released to the identified implementing agencies to pass on the benefits to the handloom weavers. However based on enumeration undertaken till now, the number of handicrafts artisans in the country during 2011-12 is estimated to be 68.86 lakhs. The number of handloom weavAt present there is no proposal to con- ers as per All India Handloom Centrol the yarn prices and to mark the sus (2009-10), State-wise, is as per exact price on the packets of cotton Table 3.The Government is impleyarn.The prices of yarn are determined menting the Schemes of Human Reby the market forces source Development and Design and Technology Upgradation under which Identity Cards to Handloom/ Handicraft artisans are being provided training. For handloom weavers trainHandicraft Workers ing is provided under Integrated State-wise number of artisans, as per Handloom Development Scheme 1995-96 census is as per the Table 2. (IHDS), now comprehensive Table 2 : State-wise total no. of Artisans Handloom Development Scheme (CHDS) and InteStates/Unions No. of grated Skill Development Artisans Scheme (ISDS). 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. Andhra Pradesh Arunachal Pradesh Assam Bihar Delhi Goa Gujarat Haryana J&K Himachal Pradesh Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh West Bengal 1,21,880 15,735 1,00,482 2,13,115 44,904 1,122 1,41,970 1,17,933 5,42,119 49,015 21,779 15,258 51,123 1,12,816 3,79,988 53,564 5,260 79,878 69,356 1,01,907 4,07,700 9,768 1,25,342 2,44,495 1,176,529 5,54,281 UjalaHathkargha Silk Coop. Society Ltd., Mau, and M/s Raj Kargha Silk Coop. Society Ltd., Azamgarh and one person Shri Shakil Ahmad S/o Shri Mohd.Yasin from Mirzapur were black listed in September, 2013 for two years, for using fake identity cards for participation in Dilli Haat, INA, New Delhi.

FDI in Textiles Sector

Union Territory 27 28 29 30 31 32 Andaman & Nicobar Chandigarh D. & Nagar Havel Daman & Diu Lakshadweep Pondecherry All India 1,090 430 111 278 126 1,832 4,761,186

The details of Foreign Direct Investment (FDI) in textiles sector during the April 2010 to June, 2013 is given in Table 4. The State/UT-wise details are not compiled.No study has been conducted in this regard. However, the impact of FDI on the overall development of the sector is felt by way of technical knowhow, new products in domestic market and increase in exTwo societies viz., M/s ports. Various labour laws ensure that the interest of workTable 3 : State-wise total no. of handloom ers including those and allied workers engaged in textile sector is protected. 1 Andhra Pradesh 355838 2 Arunachal Pradesh 33041 Development 3 Assam 1643453 4 Bihar 43392 of Pochampa5 Chhattisgarh 8191 lli Handloom 6 Delhi 2738 Park 7 Gujarat 11009 8 Haryana 7967 The project, M/s. 9 Himachal Pradesh 13458 Pochampalli 10 Jammu and Kashmir 33209 Handloom Park, 11 Jharkhand 21160 Andhra Pardesh 12 Karanataka 89256 was sanctioned in 13 Kerala 14679 May,2008 with a 14 Madhya Pradesh 14761 project cost of 15 Maharashtra 3418 Rs.34.00 crore and 16 Manipur 218753 GOI grant of 17 Meghalya 13612 Rs.13.60 crore. The 18 Mizoram 43528 total GOI grant has 19 Nagaland 66490 been released and 20 Orissa 114106 the project is com21 Pondicherry 2803 pleted. The last in22 Punjab 2636 stallment was re23 Rajasthan 31958 leased on 7th Janu24 Sikkim 568 ary, 2011. 25 Tamil Nadu 352321 The information 26 Tripura 137177 was given by the 27 Uttar Pradesh 257783 Minister of State in 28 Uttarakhand 15468 the Ministry of Tex29 West Bengal 779103 tiles in the Rajya Total 4,331,876 Sabha.

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Problems Being Faced By Textile Industry
There has been overall growth in the textiles sector as the quantum of production and export of major textile items showed an upward trend during the last 2 years and current year.The details are given in Tables 5 and 6. In order to promote growth in the textile sector, Government has launched various policy initiatives and schemes vizTechnology Upgradation Fund Scheme (TUFS), Scheme for Integrated Textile Parks (SITP) and Integrated Skill Development Scheme (ISDS). The schemes will accelerate manufacturing sector which inturn will help in employment generation. Table 4 : Foreign Direct Investment (FDI) in textiles sector (Amount in Billion) Financial Year Total (All Sector) In Rs. 2010-11 2011-12 2012-13 (Apr-Jun) 885.20 1739.46 238.20 In US$ 19.43 36.50 4.43

Functioning of textile industries in Maharashtra

National Textile Corporation (NTC) had a total of 35 sick mills taken over from private entrepreneurs under various legislations in the state of Maharashtra. Due to the continuous loses and erosion of its net worth these mills were referred to Board of Industrial Financial Reconstruction (BIFR). Now NTC is implementing BIFR approved revival scheme, under which 5 mills have been revived by NTC which is financed through sale of surplus assets of NTC. 5 mills are managed through joint venture route (Table 7). The list of remaining closed mills are at (Table 8). The detail of land & machinery of Textile Industries sold in the state of Maharashtra during last ten years is

Source : Department of Industrial Policy & Promotion, Ministry of Commerce and Industry, Govt. of India.

Table 5 : Production of textile items Item (Unit) 2011-12 2012-13 (April-Dec) (Prov.) 2013-14 Manmade fibre (Mn. Kg) Spurn yarn (Mn. Kg) Manmade filament yarn (Mn. Kg) Fabrics (including Khadi, wool & silk)- Mn.sq. mtr as under : (Rs. in Cr) Plant & Machinery Land Total 145.85 4939.33 5085.18 1234 4372 1463 60453 1263 4868 1371 62583 988 3942 987 48057 2012-13 949 3599 1056 47099

Revival of NTC Mills

Due to obsolete technology, excess manpower and poor productivity, National Textile Corporation (NTC) was referred to Board for Industrial and Financial Reconstruction (BIFR). Now

Table 6 : Export Of Major Textile Items (Chapter Heading 50 to 63) (Value in Rs Lakh) Items (Unit) 2011-2012 Qty Fibre (Tonnes) 2668632 Value 2494819 57144 2490213 2224797 6573855 1893043 817593 16551463 2012-2013 2012-2013 Qty 2794579 93803 1983660 NA NA NA NA NA Value 2304717 67360 3015620 2311408 7052201 2197994 1049371 Qty Value April-October 2013-2014 Qty 837914 70852 Value 606802 59239

1013801 790299 52068 36841

Fibre waste (Tonnes) 83335 Yarn (Tonnes) Fabrics (---) RMG (---) Madeups (---) Other Textiles (---) Total (---) 1619343 NA NA NA NA NA

1096624 1644464 NA NA NA NA 1345672 3902836 1290678 589413 9600203

1236234 2233581 NA NA NA NA NA 1610456 4927377 1515917 726340 11679712

17998671 NA

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NTC is implementing a revival Scheme approved by BIFR, under which, 78 mills have been closed down (Table 9) and 24 mills are to be revived, out of which 23 are functioning and one mill is stated to be set up as technical textile unit in Rajasthan. Some of the officials/employees/ labourers are still availing the accommodation facility of closed mills of NTC as per local arrangements by the mill managements. Government has not taken any decision so far to provide them ownership. TABLE 7 : DISTRICT-WISE MAHARASHTRA STATE MILLS REVIVED BY NTC SR. NO. 1 2 3 4 5 NAME OF THE MILLS PODAR MILLS MUMBAI TATA MILLS MUMBAI BARSHI TEXTILE MILLS BARSHI FINLAY MILLS ACHALPUR TOTAL DISTRICT MUMBAI MUMBAI SHOLAPUR AMRAVATI AMOUNT (RS. CR.) 39.96 80.87 31.44 24.67 254.66 431.60

INDIA UNITED M ILL NO.5 MUMBAI MUMBAI

Trade unions urge Centre to help Anglo French Textiles running

DISTRICT WISE MAHARASHTRA STATE MILLS REVIVED THROUGH J.V. ROUTE 1 2 3 4 INDIA UNITED MILLS NO.1 MUMBAI APOLLO TEXTILE MILLS MUMBAI GOLDMOHUR MILLS MUMBAI NEW CITY OF BOMBAY MFG. MILLS MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI

The All Trade Unions Action Commit5 AURANGABAD TEXTILE MILLS AURANGABAD AURANGABAD tee of Anglo French Textiles has urged the territorial administration to take steps to proTABLE 8 : DISTRICT-WISE NTC MILLS vide order for manufacturing uniforms to AFT Mill. OF MAHARASHTRA CLOSED UNDER ID ACT A decision to that effect was taken at a meeting held in Puducherry recently. While thanking the Chief Minister N. Rangasamy and the mill management for restarting the mill as per the promise made to the unions, the Committee said that the government had already placed order for making uniforms for school going children. Similarly, it should ask the police, jail, hospital and other administrations to place order for making uniforms to the AFT Mill so as to ensure marketing of AFT products. It would enable it to get advance money from the concerned departments for quick liquidation. Reiterating the demand for providing Rs. 500 crore to the AFT Mill for its total rehabilitation, another resolution said the Central government must take speedy steps on the proposal. The age old mill couldnt be allowed to sink. Sincere steps must be taken to consider the proposal. Similarly, the Central government should act immediately on the memorandum of territorial administration, seeking permission to enable the AFT Mill management to sell its land at Pattanur to carry out interim measures to ensure the smooth running of the mill.
S. NAME OF THE MILLS NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 INDIA UNITED MILLS NO.2 MUMBAI INDIA UNITED MILLS NO.3 MUMBAI INDIA UNITED MILLS NO.4 MUMBAI KOHINOOR MILLS NO.2 MUMBAI KOHINOOR MILLS NO.3 MUMBAI JAM MFG. MILLS MUMBAI MODEL MILLS NAGPUR R.S.R.G. MILLS AKOLA SHRI SITARAM MILLS MUMBAI VIDHARBHA MILLS ACHALPUR BHARAT TEXTILE MILLS MUMBAI DIGV IJAY TEXTILE MILLS MUMBAI ELPHINSTONE SPG & WVG MILLS MUMBAI JUPITER TEXTILE MILLS MUMBAI MUMBAI TEXTILE MILLS MUMBAI NEW HIND TEXTILE MILLS MUMBAI PODAR PROCESSORS MUMBAI SHREE MADHUSUDAN MILLS MUMBAI
INDIA UNITED MILLS NO.6 (DYE WORKS) MUMBAI

DISTRICT MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI NAGPUR AKOLA MUMBAI AMRAVATI MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI

KOHINOOR MILLS NO.1 MUMBAI

"Your ability to be a winner 100% of the time is based upon giving up the notion that losing at anything is equivalent to being a loser."
- Dr. Wayne W. Dyer NCM-FEBRUARY 2014 94

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TN Millowners have no plans to invest in any other State, says SIMA chief
Coimbatore : Textile industry in Tamil Nadu is not looking to invest elsewhere, The Southern India Mills Association (SIMA) chief T Rajkumar said. The Chairman of the apex body of textile mills in the South said that the industrial climate in Tamil Nadu ranked on the top in many ways. Though he maintained that the call for the meet had nothing to do with the expression of interest given by industry bodies here to the Karnataka Chief Minister Siddaramaiah during the recent visit to this region (to lure investors to consider investing in the neighbouring State), his assertion that it would be impossible for the textile industry to invest in Chamrajnagar, seemed to suggest otherwise. Industry-friendly policy The State, despite its dependence on cotton from upcountry markets, accounts for 47 per cent of yarn production. An industry-friendly textile policy would attract new investments in modernisation and green-field projects, he said. He did not deny the lull in investment climate in the past three years. Acute power shortage aggravated the industrial climate, resulting in new investments coming to a standstill for the last five years. Investments were further delayed due to the delay in announcing the new Technology Upgradation Fund Scheme for the 12th Plan Period, he said in reply to a question. Investments The sector, however, is fully geared for new investments and it is estimated that the industry might invest over Rs.1.5 lakh crore over the next four years. The Tamil Nadu Governments assurance about taking adequate steps to make the States textile policy more attractive to enhance competitiveness of the sector would take care of all the needs of the industry, he said, adding, the SIMA delegation met the Chief Minister J Jayalalithaa and assured that we have no plans to invest in any other State. Though the State is facing certain challenges on raw material front and power in the short run, the powers that be are addressing such issues on a war footing, he added.
TABLE 8 : DISTRICT-WISE NTC MILLS OF MAHARASHTRA CLOSED UNDER ID ACT S. NAME OF THE MILLS NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 INDIA UNITED MILLS NO.2 MUMBAI INDIA UNITED MILLS NO.3 MUMBAI INDIA UNITED MILLS NO.4 MUMBAI KOHINOOR MILLS NO.2 MUMBAI KOHINOOR MILLS NO.3 MUMBAI JAM MFG. MILLS MUMBAI MODEL MILLS NAGPUR R.S.R.G. MILLS AKOLA SHRI SITARAM MILLS MUMBAI VIDHARBHA MILLS ACHALPUR BHARAT TEXTILE MILLS MUMBAI DIGV IJAY TEXTILE MILLS MUMBAI ELPHINSTONE SPG & WVG MILLS MUMBAI JUPITER TEXTILE MILLS MUMBAI MUMBAI TEXTILE MILLS MUMBAI NEW HIND TEXTILE MILLS MUMBAI PODAR PROCESSORS MUMBAI SHREE MADHUSUDAN MILLS MUMBAI
INDIA UNITED MILLS NO.6 (DYE WORKS) MUMBAI

DISTRICT MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI NAGPUR AKOLA MUMBAI AMRAVATI MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI MUMBAI

KOHINOOR MILLS NO.1 MUMBAI

DISTRICT- WISE NTC MILLS OF MAHARASHTRA STATE FOR WHOM M.O.U. SIGNED FOR J.V. CANCELLED ARBITATOR APPOINTED MATTER SUB-JUDICE SR. MILL NO. 21 22 23 24 25 RBBA MILLS HINGANGHAT SAVATRAM RAMPRASAD MILLS AKOLA DISTRICT
HINGANGHAT

AKOLA

CHALISGAON TEXTILE MILLS CHALISGAON CHALISGAON DHULE TEXTILE MILLS DHULE NANDED TEXTILE MILLS NANDED DHULE NANDED

TN to launch Rs.50-crore cotton mission The government will launch a Rs.50-crore Tamil Nadu Cotton Cultivation Mission to boost the cotton production in the State, said Finance Minister O. Panneerselvam in his budget speech recently. The Minister said cotton was cultivated on 3.34 lakh acres with a production of four lakh bales. But all the 1,948 spinning mills in the State required 110 lakh bales per year. Under the mission, at least 3.70 lakh acres will be brought under cotton cultivation in 2014-15 and ultimately the cultivation will be

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TABLE 9 : LIST OF 78 MILLS CLOSED UNDER I.D. ACT Sr. NAME OF THE MILLS No. Andhra Pradesh 1 2 3 4 5 6 7 8 AZAM JAHI MILLS NATRAJ SPINNING MILLS ADONI COTTON MILLS NETHA SPINNING MILLS ANANTHAPUR COTTON MILLS ASSOCIASED INDUSTRIES GAYA COTTON & JUTE MILLS BIHAR CO-OPERATIVE MILLS AHMEDBAD JUPITER TEX. MILLS JEHANGIR TEXTILE MILLS MAHALAXMI TEXTILE MILLS NEW MANEKCHOWK TEXTILE MILL PETLAD TEXTILE MILLS RAJKOT TEX.MILLS VIRAMGAM TEX.MILLS RAJNAGAR II HIMADARI TEXTILE MILLS AHMEDABAD NEW TEXTILE MILLS M.S.K. MILLS MYSORE SPG. & MFG. MILLS SHREE YALLAMA COTTON MILLS MINERVA MILLS BENGAL NAGPUR COTTON MILLS HIRA MILLS INDORE MALWA UNITED MILLS KALYAN MAL MILLS SWADESHI TEXTILE MILLS INDIA UNITED MILLS NO.2 INDIA UNITED MILLS NO.3 INDIA UNITED MILLS NO.4 KOHINOOR MILLS NO.2 KOHINOOR MILLS NO.3 JAM MFG. MILLS MODEL MILLS R.S.R.G. MILLS SHRI SITARAM MILLS VIDHARBHA MILLS BHARAT TEXTILE MILLS DIGV IJAY TEXTILE MILLS ELPHINSTONE SPG & WVG MILLS JUPITER TEXTILE MILLS MUMBAI TEXTILE MILLS NEW HIND TEXTILE MILLS PODAR PROCESSORS SHREE MADHUSUDAN MILLS INDIA UNITED MILLS NO.6 (Dye Works) KOHINOOR MILLS NO.1 FINLAY MILLS Warangal Adilabad Adoni Hyderabad Assam Chandrapur Gaya Mokameh Ahmedabad Ahmedabad Bhavnagar Ahmedabad Petlad Rajkot Viramgam Ahmedabad Ahmedabad Ahmedabad Gulbarga Bangalore Davangere Bangalore Rajnandgaon Ujjain Indore Indore Indore Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Nagpur Akola Mumbai Achalpur Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Mumbai Unviable Unviable Unviable Unviable En-mass MVRS En-mass MVRS Unviable En-mass MVRS Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable En-mass MVRS Unviable Unviable En-mass MVRS
Relocated@Hassan

LOCATION

REASONS OF CLOSURE

Bihar

Gujarat

T Rajkumar (SIMA Chairman) expanded to 6 lakh acres in the next five years. He said as part of the governments efforts to improve on-farm productivity and farmers income, various subprojects would be taken up under the National Agriculture Development Programme (NADP) at a cost of Rs. 323 crore. Moreover, the crop loan target for the co-operatives would be enhanced to an unprecedented level of Rs. 5,000 crore. The allocation for crop insurance was Rs 242.54 crore. Earlier, the DMK and its allies staged a walkout from the House alleging that the time of tabling the budget was changed without consulting them. The Southern India Mills Association (SIMA), welcoming the announcement, said it would enable the State to be self-sufficient in cotton. The SIMA chairman, T. Rajkumar, said that textile mills in the State needed over 100 lakh bales a year. However, just five lakh bales of cotton were produced and the mills procured the rest from other States. The mills were paying high freight costs to transport cotton from other States.

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

Karnataka

Madhya Pradesh Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable En-mass MVRS En-mass MVRS
Relocated@Achalpur

Maharashtra

SIMA welcomes restoration of export incentive for cotton yarn

Southern India Mills Association

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(SIMA) Chairman, T Rajkumar has hailed the Centres decision in restoring the incremental export incentivisation scheme for cotton yarn and appealed to restore Focus Market Scheme also. In a recent press release, he thanked the Union Commerce Ministry and said : "The restoration of export incentivisation scheme, due to the proactive measures taken by the Union Textile minister, would motivate the yarn exporters to recapture the market. Mr. Rajkumar also appealed the Centre to restore the FMS for cotton yarn, particularly for the Countries like Latin America and CIS Countries, as India cannot fully depend on China, which is the major importer of Indian Cotton yarn. FMS is essential to offset the high freight rate for such countries. Signing of GSP Plus (Generalised System of Preference) agreement by Pakistan really posed a challenge to India, as Pakistan is gaining 9. 6 per cent advantage due to duty free access to EU countries, he said. Mr. Rajkumar asked the Centre to announce suitable interest subvention (three to 5 per cent) at the earliest, which would enable the Indian exporters to compete with Pakisan to a certain extent and sustain the competitiveness.

Textiles Minister seeks duty-free access to the EU

India is seeking duty-free access for its garments and textiles into the European Union, in line with what is on offer to competing countries such as Pakistan and Bangladesh. The Textiles Ministry is already in talks with Germany and the UK for zero duty ac-

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cess for garments and some other textile items, according to Textiles Minister KS Rao. We are negotiating Government-toGovernment. We want them (EU countries) to give us the same dispensation as Pakistan and Bangladesh, the Minister said. It is important to ensure a level-playing field for Indian exporters. The Ministry has also asked the Finance Ministry for an interest rate subvention (lower interest rate) of 3-4 per cent for textile exporters. This will help them compete in the export market better and exports would go up, Rao said. Preferences scheme The Minister said that the Textile Ministry would set an ambitious export target of $60 billion for the textiles sector for the coming fiscal, which is almost 50 per cent higher than exports of $41 billion estimated this year. But the fact that the country has graduated out of the Generalised System of Preferences (GSP) scheme offered by the EU under which it was getting preferential access to the European market (by paying lower import duties) could make the going tough. EU is Indias largest market for textiles. While Bangladesh and Sri Lanka have been taking advantage of a duty-free regime for their textile items for some time, Pakistan too has been made eligible for zero-duty access since January this year under the EUs GSP Plus scheme. Rao said that Indian garments and textiles were getting affected because of the double blow. In a market like Germany, while Pakistan does not have to pay any duties for readymade garments, Indian exporters are subject to a duty of 9.36 per cent, the Minister said. As per estimates made by the Pakistani Government, the textile industry would earn additional profits of $930 million per year because of the GSP Plus scheme. Under the GSP Plus scheme, Pakistan is allowed to exLIST OF 78 MILLS CLOSED UNDER I.D. ACT (Contd. from last page....) Sr. NAME OF THE MILLS No. Punjab 49 50 51 52 DAYALBAGH SPG & WVG MILLS PANIPAT WOOLLEN MILLS KHARAR TEXTILE MILLS SURAJ TEXTILE MILLS Amritsar Kharar Kharar Malout Unviable Unviable En-mass MVRS En-mass MVRS LOCATION REASONS OF CLOSURE

Rajasthan 53 EDWARD MILLS 54 SHREE BIJAY COTTON MILLS Uttar Pradesh 55 56 57 58 59 60 61 62 63 64 ATHERTON MILLS BIJLI COTTON MILLS LAXMIRATTAN COTTON MILLS LORD KRISHNA TEX.MILLS MUIR MILLS NEW VICTORIA MILLS RAE BARELI TEX. MILLS SHRI VIKRAM COTTON MILLS SWADESHI COTTON MILLS SWADESHI COTTON MILLS Kanpur Hathras Kanpur Saharanpur Kanpur Kanpur Raebareli Lucknow Kanpur Naini Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable En-mass MVRS Beawar Bijianagar Unviable En-mass MVRS

West Bengal 65 66 67 68 69 70 71 72 73 BANGASRI COTTON MILLS BENGAL FINE S.&W.MILLS NO.II MANINDRA B.T. MILLS JYOTI WVG. FACTORY CENTRAL COTTON MILLS SHREE MAHALAXMI COTTON BENGAL FINE S.&W.MILLS NO.I BENGAL LUXMI COTTON MILLS RAMPOORIA COTTON MILLS Sonepore Kataganj Cossim Bazar Patipukur Belur Palta Konnagar Serampore Rishra Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable Unviable

Tamil Nadu 74 BALARAMAVARMA TEXTILE MILLS 75 KISHNAVENI TEXTILE MILLS 76 OM PARASAKTHI MILLS 77 SOMASUNDARAM MILLS 78 KALEESWARAR MILLS 'A' UNIT Shencottah Coimbatore Coimbatore Coimbatore Coimbatore Unviable Unviable Unviable Unviable Unviable

port textile goods to the 27-member EU duty free till 2017. With Chinese textiles becoming uncompetitive due to rising labour cost and Bangladeshi textiles facing quality issues, India is hopeful that several European countries will take the country's request seriously. EU imports 95 per cent of its textile requirements. It is giving concessions to Pakistan and Bangladesh for political reasons. We are requesting the same, Rao pointed out.

Non-operating Textile units in Punjab up by 35%

Chandigarh : Clocking a compounded annual growth rate (CAGR) of around 35%, the number of non-operating textile units in Punjab grew from 11 to 227 units during the 2000-01 and 2010-11 period, as per an Assocham study. "The number of jobs lost due to the non-operation of textile units in Punjab NCM-FEBRUARY 2014 98

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have grown at a CAGR of about 41% during the aforesaid period as the state has suffered loss of over 32,600 jobs as of 2010-11 as against over 1,000 in 2000-01," according to the study titled 'State-wise assessment of textile sector & recommendations,' conducted by Assocham. Similarly, in Haryana, non-operating textile units grew from 11 to 175 during the aforesaid period thereby clocking a CAGR of about 32%. The state suffered a loss of 14,300 jobs as of 2010-11 as against 675 jobs lost as of 2000-01, the study highlighted. The number of jobs lost due to the non-operation of textile units in Haryana grew at about 36%, it added. "The total number of textile factories in Punjab increased from 635 to 929 during the aforesaid period. However, the number of units in operation increased from 624 to just 702," the study said. "While in Haryana, the total number of textile factories increased from 455 to 630, the number of textile factories in operation increased from 444 to 455." The number of people employed in the textile units under operation in Punjab increased from 58,804 to over 1,00,857 during the abovesaid period, while in Haryana the number of people employed in textile units increased from 27,238 to 37,228 during the said period. "Low productivity, lack of advanced manufacturing technologies, lack of foreign investments, supply chain bottlenecks, lack of economies of scale, labourrelated challenges, issues arising due to a fragmented industry and weak brand positioning are certain key reasons for the non-operation of textile units," said DS Rawat, national secretary-general, Assocham. "Technology and skill upgradation, inflow of foreign investments, partnership with international labels, brand promotion and flexible labour policy are certain key suggestions listed by our study to make the textile industry financially viable to minimize the share of non-operational factories."

DS Rawat (Secretary-General, Assocham)

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Textile Industry faces crisis in Amritsar Jalandhar - Ludhiana
The government has announced measures to attract industrial investment but the states existing industry in Amritsar, Jalandhar and Ludhiana is in doldrums. The centuries-old textile industry in Amritsar is struggling for survival, grappling with labour scarcity, high taxes and high power rates. It has an annual turnover of over Rs 1,000 cr, half of it coming from the shawl industry alone. There are two mega units - OCM, established during the British rule and now owned by a US-based private equity fund named WL Ross and Company, and Swadeshi. Data with the Punjab Industries Department shows there are 856 registered textile units in the city. However, there is no exact information on the number of employees in these units. Also, there are hundreds of unregistered handlooms. These are of three kinds powerloom, automatic and shuttle-less Rapier with electronic jacquards. PL Seth, a textile unit operator, said the governments indifference could be gauged from the fact that no textile policy had been chalked out after 2006. He said after agriculture, textile was the most labour-intensive sector offering jobs to a large number of people. The government is giving power subsidy to the tune of about Rs 7,000 crore to farmers. A mere 10 per cent of this amount could do wonders to bolster the textile sector in the border district, he claimed. Labour unions say that more than 5,000 weavers are working in this sector. Labour leader Amarjeet Singh Assal complained of unhygienic working conditions and long working hours. With Punjabi youth reluctant to work in factories and labour from UP and Bihar only a trickle, the units are facing a severe labour shortage. A large number of small and medium category units have shifted to the computerised rapier shuttle-less looms. But there are few hands to operate and mend these looms. These computer-operated looms weave yarn like cotton, polyester, silk and nylon. But big units have turned to the stateof-the-art dobby shuttle-less looms. The state governments plan to upgrade curriculum in ITIs with the assistance of a German firm is still to take off. The Punjab Institute of Textile Technology, the only one of its kind in Punjab, Har yana, Himachal Pradesh and Jammu and Kashmir, has failed to deliver, says textile industrialist Kamal Dalmia. Dyeing and finishing units, spinning mills, 4,500 modern embroidery machines and 400 shuttle-less Rapier looms with electronic jacquards and cone dyeing and printing industries lend ample support to the city's textile industry. Rough estimates suggest that textile goods, such as high-quality tweed, shawls and stoles, worth Rs 200 crore are sold to countries all over the world. Textile industrialist Bhupinder Khosla says that VAT on yarn within the state is 6.05 per cent while the CST on the same from outside the state is 2 per cent. As a result, manufacturers and traders pass on the high input cost to the retailers. Also, the high VAT prevents the dealers from getting registered, which affects tax collection. He says the VAT on yarn must be brought down to 2 per cent to bring it on a par with VAT on cotton and paper. "This move can revive allied textile industries like spinning and weaving," he suggested. Liquidity crunch SK Wadhwa, who manufatures blankets, said the textile industry in the country was going through a tough period and needed Rs 11,000-crore liquidity for restructuring. As of now, industrialists were getting term loan (advance given for setting up industry) and loan on the working capital at an interest of 13 to 14 per cent per annum. "Extremely high rates of interest make it unviable to invest in the textile business," he explained. Though the government has increased capital subsidy from 20 to 30 per cent on Rapier shuttle-less looms, the steep rise in the US dollar and Euro rates has neutralised the effect. Hence, the government needs to reduce import duty to f 5 per cent from the existing 17.45 per cent, say manufacturers. "This will also help convert 20 lakh manual looms to shuttle-less looms as per the Ministry of Textile plan chalked out last year," they say. The shawl industry being the mainstay of the textile sector, the chant to announce Amritsar as a city of shawls is growing louder, especially as Amritsar-manufactured shawls are sold as Kashmiri shawls in the rest of the country. PL Seth, whose family is one of the oldest players in the industry, said only enterprising industries with adequate liquidity could capitalise on the subsidy extended by the Union Government. He said the textile industry, the oldest in the city, had got no help from any political party. " Like other existing industries in the state, we are dismayed with the new industrial policy that has nothing to offer." Amritsar-based Shawl Club of India (SCI) has requested the state government to take steps to revive the centuries-old textile Industry through the ensuing Budget of 201415. Piara Lal Seth, SCI general secretar y, SCI, appreciated the governments move to turn Punjab into a power surplus state. But, the labour-intensive textile industry needed rebate from high power taxes. In a letter to the Chief Minister, he said, power rates of the textile industry are highest in comparison to other states in the country. Recently Delhi, Haryana and Maharashtra reduced their power rates. As a result, the indigenous textile industry here was not in a position to compete with manufacturing units operational in these states. In light of these facts there was a need to reduce power rates to the tune of 30 to 40 per cent to make it industry friendly so that existing entrepreneurs and new entrepreneurs may take initiative for expansion of their existing units and investment for new units.

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