Malegaon: While admitting that the
textile industry has so far not been given the attention it
deserves, Textile Secretary Rita Menon on December 26 in New Delhi
proposed wide ranging initiatives to be included in the 12th five
year plan for the industry, especially the smaller powerloom
clusters, so as to deal with the global challenges.
“That the textile industry is one of the largest is not a secret
anymore. Despite this it could not get the required attention as
the other sectors and comparatively very small budgetary funds
were allocated for its development”, Ms Menon said in her concluding remarks while addressing the powerloom
stakeholders meeting at Udyog Bhavan. She was assisted by Joint
Secretary (Textiles) Ms Sunaina Tomar in the meeting.
“However”, Ms Menon said, “For the 12th five year plan, we have
proposed to restructure the entire schemes, and also to make
smoother the release of subsidies and loans keeping in mind the
global challenges specially from China which the industry is
A total of 46 industrialists from 9 textile centres of the country
with around 2.3mn powerlooms made to the venue despite chilling
cold in the National Capital. Malegaon Industrialists and
Manufacturers Association (MIMA) represented the Malegaon Textile
Cluster in the meeting called ahead of the finalization of the 12h
five year plan, which commence from 1st April 2012.
Besides restructuring the entire Technology Upgradation Fund (TUF)
scheme, Textile Ministry’s flagship program introduced in 2001,
Ms. Menon also promised to fight for more funds in the next five
year plan for the industry.
“We have decided to extend the TUF scheme till 2017 and are also
working on allocating more funds under this scheme so that more
and more people upgrade their existing machineries and
infrastructure to international standard”, she added.
“Our special attention for the next five year plan is also on
smaller and decentralized powerloom clusters. We have proposed Rs.
15000 or 50% of the upgradation cost especially for such centres
so that they also improve their machineries and the product
quality”, Ms Menon said with a direct reference to Malegaon,
Bhiwandi, Burhanpur, Jabalpur and Tanda in Uttar Pradesh.
Ms Menon also agrees to propose in the 12th five year plan to
de-link the capital subsidy from the bank loan, to increase the
government’s share under Group Work-shed Scheme and to lower the
number of powerlooms from 48 to 12 in one group.
To control yarn prices, Ms Menon proposed establishment of yarn
banks and government owned yarn sales depot all across the
country. She also advocated restarting the spinning mills owned by
co-operative societies that remain non-operational due to various
On top of the plethora of the issues and difficulties unleashed by
the industrialists gathered from all across the country were
irregular power supply and prolonged power cuts, shortage of
skilled labour, volatility in yarn prices and difficulties the
industrialists are facing in getting the loans from the banks.
According to the data presented in the meeting, the industry is
facing daily production loss of 30-40% due to power cuts and
shortage of raw materials.
The important suggestions which came during the meeting include
National yarn price monitoring system, bringing yarn under the
Essential Commodity Act, uniform electricity charges for all
states, duty exemption on imported shuttleless looms, abolishing
of octroi and other taxes including newly introduced labour cess
and granting special status to the textile industry like making it
a labour oriented industry and a priority sector.