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Small spinners' in TN threat to down shutters

R.Y. Narayanan

COIMBATORE, Oct 21

THE South India Small Spinners Association (SISSPA), Coimbatore, has threatened that its member - mills will pull down the shutters from November 1 if the Central and State Governments did not come to their rescue by offering a relief package as sought by it.

The SISSPA has also decided to seek the backing of other associations in a bid to shore up its demands. In a statement, Mr U.G. Kanakarajan, President, SISSPA regretted that though the association has been bringing to the notice of the Centre and State G overnment the travails of the industry in the past few years, these have not elicited any response from the Governments.

He sought the Central Government's intervention for writing off at least 50 per cent of the existing term loan availed by the mills and the balance should be rescheduled as fresh term loan of 10 year duration. The repayments should also start after a 2-y ear holiday period.

He said because of recession faced by the textile industry for the past five years, the working capital has been eroded. The nationalised banks should extend fresh working capital limits to the mills at 5 per cent interest and the likely loss on this sco re may be compensated by the Textile Upgradation Fund (TUF).

Mr Kanakarajan wanted the Centre to restore the Central excise exemption of Rs 1 crore to small spinning mills as given to the SSI sector. The excise duty on cotton yarn and polyester yarn and customs duty on imported cotton should be withdrawn.

He said the Tamil Nadu Government should treat the spinning mills on a par with the powerloom industry in fixing the power tariff. The TNEB should withdraw the peak hour additional power charges and concessional tariff should be levied for operating the night shifts.

The SISSPA President appealed to the State Government to reduce the ST on cone yarn to 2 per cent and withdraw the ST on hank yarn and cotton produced within the State. The additional ST of 1 per cent levied on a turnover of more than Rs 10 crore should be withdrawn in respect of spinning mills.

He urged the State Government to recall its order on payment of interim relief to the mill workers since the textile mills have been facing recession.