![]() Financial Daily from THE HINDU group of publications Tuesday, Oct 01, 2002 |
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Industry & Economy
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Textiles Input costs stump textile mills in East Our Bureau
KOLKATA, Sept. 30 EVER increasing input costs, exorbitant power costs, lack of facilities for captive generating power and low productivity are the main causes behind the decline and decay of the textile industry in the eastern India. This was stated by Mr A.N. Choudhary at the 68th annual general meeting of the Eastern India Textile Mills Association held recently in the city. He said that the overall functioning of the textile mills in the region had become uneconomic and so most of them had been forced to suspend operations. ``However, a few mills are still running but most of them had resorted to job working for survival. These units are operating at a nominal percentage of their total installed capacity'', Mr Choudhary stated. Of the 23 textile mills in West Bengal, six mills had beenclosed for some time. During the last three to four years, as many as seven mills had declared suspension of work. At present, only seven are operating. On a national basis, the number of closed textile mills has increased to 421 in March against 383 in the previous year. Of this, 149 mills are lying closed for over five years and 38 had been closed down for less a year. ``The cost of closure of the organised mills to the economy in 2001-02 had been assessed by the Textile Commission. It was found that 159.69 million kg of yarn, 179.14 million sq. m of fabrics production and a total of eight crore man-days have been lost'', he stated. He felt that the need of the hour is to devise a rational wage structure, which should be consistent with the present day needs. Adequate emphasis should be laid on improved productivity and work culture. ``We, therefore, appeal the concerned State Governments to take steps necessary in this direction after consulting the trade unions and the managements. This step should be taken without any further delay'', he said. He requested the West Bengal Government to allow the textile mills to set up captive power generating units. According to him, the cost of self-generated power would come to around Rs 2.50-3 per unit against Rs 4-5 per unit char-ged by the power companies.
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