Online edition of India's National Newspaper
Thursday, Jul 26, 2007
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Online edition of India's National Newspaper Thursday, Jul 26, 2007 ePaper |
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Tamil Nadu
N. Anand
They will consider reduction in the number of working days in a week Buyers are not interested in increasing price for fresh contracts
CHENNAI: Representatives of the spinning mills in Tamil Nadu will meet at Dindigul next week to discuss the impact of the rising rupee, which has brought the margin of profit down. They will also decide the future course of action, including a reduction in the number of working days in a week, to curtail further losses since the credit package announced by the Centre has failed to give them any relief. Talking to The Hindu on Monday, Tamil Nadu Spinning Mills Association president A. P. Appu Kutti said: “We are still in the same position. Our future continues to be bleak. No fresh investments are coming in as some of the in vestors have deposited their money in the stock market … Banks are reluctant to lend. We have built up over-capacities and it is difficult to service the existing mills.” Retrenchment
The buyers are not interested in increasing the price for fresh contracts that begin in the next few weeks. Hence, the Association members are planning to cut down production by a day or two in a week, or retrench labour. They feel it doesn’t make sense to keep their units operational, as the profit margin has come down. According to Mr. Appu Kutti, 2,000 spinning mills operate in the State, employing over 3.5 lakh workers. On an average, the mills produce eight tonnes of yarn a day, roughly worth Rs 1.80 crore of business. The high realisable value has led to the export of cotton, thus creating a shortage in the domestic market. Some breather
Tirupur Exporters Association president A. Sakthivel said: “We got some breather. But this has not changed the scenario drastically. We await some more relief with regard to service tax, fringe benefits tax and extension of relief beyond December 2007.” Power situation
Southern India Mills’ Association secretary-general K. Selvaraju said on Wednesday that over 100-150 managing directors of textile mills would meet in Coimbatore to discuss how to tackle the ‘power’ crisis that had crippled the major industries. “There has not been much improvement in the power situation.” Power tripping
The former SIMA president, Manikam Ramaswami, said: “The present industrial situation in the State is pathetic owing to power tripping every month. Power tripping on a 110-kv line lasts up to 10 hours in a month. Each tripping lasts for 30 minutes, and it takes more than 30 minutes to start production.”
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