The Hindu : Tamil Nadu News : Liberalised policy, funds crunch hit units

Online edition of India's National Newspaper
Saturday, Jul 31, 2004

Tamil Nadu

Tamil Nadu

Liberalised policy, funds crunch hit units

By Our Special Correspondent

CHENNAI, JULY 30. The textile industry is "reeling under recession" owing to the liberalised textile policy, fluctuation in market trends, poor quality of cotton, paucity of funds, existence of unviable units with obsolete machinery and the impact of the World Trade Organisation regime, the Minister for Handlooms and Textiles, V. Somasundaram, said today.

Moving the demand for grants to his department, he told the Assembly that 392 mills had remained closed in the State. The issues affected the units not only in the State but also the rest of the country.

The performance of 18 cooperative spinning mills declined over a period and on an average, they were collectively incurring a loss of Rs.3 crores a month. The accumulated loss crossed Rs.470 crores in March last. With funds sanctioned by the Government on two occasions, 3,520 workers and employees of the cooperative mills were given voluntary retirement. Their terminal benefits amounted to Rs.56.68 crores, he pointed out.

Sari distribution

Giving an account of the action plan for the current financial year, he said Rs.173 crores was earmarked for free distribution of 1.11 crore polycot sarees and an equal number of polycot dhotis for Pongal.

The Government had allocated Rs.43.58 crores for the free school uniform scheme.

Introduction of 365 new designs in various product categories, opening of three botique showrooms for sale of specific product groups, computerisation of 10 showrooms and introduction of the voluntary retirement scheme were part of Cooptex plans, he said. Tamil Nadu Zari Limited, Kancheepuram, proposed to increase production and sales to the level of 84,000 marcs of zari during the current financial year. It was planned to get ISO 14001 certification for the Tamil Nadu Cooperative Textile Processing Mills, Erode.

Cattle disease-control

Moving the demand for grants to his Ministry, the Minister for Animal Husbandry, P.V.Damodhiran, said the State having been declared "Rinderpest-free" from May last was a milestone in successful disease-control activities of the department.

Upgrading 75 veterinary sub-centres dispensaries at a cost of Rs.336.75 lakhs, taking steps to control canine rabies in urban areas at a cost of Rs.10 lakhs, construction of veterinary first-aid centres in 10 livestock shandies at a cost of Rs.10 lakhs in consultation with local bodies, establishment of a Rs. 26.82-lakh emu research unit and launching of a unit to produce Indian major carps at the Fisheries College and Research Institute, Tuticorin, at a cost of Rs.17.51 lakhs are among the new programmes for the current financial year.

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