The Hindu : Karnataka News : KHDC resents Govt. ignoring it in purchase of bandage cloth

Online edition of India's National Newspaper
Saturday, Jan 01, 2005

Karnataka

Karnataka

KHDC resents Govt. ignoring it in purchase of bandage cloth

By Our Staff Reporter

BANGALORE, DEC. 31. Karnataka Handloom Development Corporation (KHDC) has protested against the action of the State Government in buying 65 lakh metres of bandage cloth from a private party in Tamil Nadu for hospitals, and ignoring the interest of the corporation.

The corporation chairman, L.R. Ananth, told presspersons here on Wednesday that the Government has taken the decision although KHDC offered to supply the cloth at a price 40 paise a metre lower than what the Tamil Nadu supplier had quoted in his tender documents.

Mr. Ananth said the corporation was supplying bandage cloth to government hospitals all these years giving employment to thousands of weavers.

The officers in the Health and Family Welfare Department had amended the rules incorporating a provision in it that bandage cloth should be supplied by a person or company that had a drug licence.

He said the officers declared that the bandage cloth was a drug.

The corporation which was in the dark about the change in rules and did not acquire a drug licence lost the order.

But a private trader, armed with a drug licence, bagged the supply order although he did not even have a loom.

Mr. Ananth said the corporation had urged the Chief Minister, N. Dharam Singh, to issue government orders to the departments of Social Welfare, Health and Family Welfare and Home as well as the Karnataka State Road Transport Corporation to purchase cloth for uniforms from KHDC.

This would help the corporation to undertake work worth around Rs. 800 crores so that the entire power loom and handloom weavers in the Sate will benefit.

He urged Mr. Singh to release another Rs. 7 crores to the corporation for implementing the voluntary retirement scheme in respect of 127 employees and Rs. 80 lakhs a month.

Mr. Singh had discussed the issue of amalgamating the corporation, the Powerloom Development Corporation and the Cauvery Handlooms.

The chairman said that the Union Textile Ministry had approved its proposal to sanction Rs. 2 crores for upgrading the machinery.

He urged the Chief Minister to abolish the 12 per cent sales tax imposed on sizing, printing and processing of handloom fabrics, which is hampering the growth of the industry.

He said that a State-level conference of weavers will be held in the last week of January to draw the attention of the Government to their problems.

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