The Hindu : Front Page : Tirupur dyeing units in dire straits

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Sunday, Oct 05, 2008
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Tirupur dyeing units in dire straits

R. Vimal Kumar

The dyers are now in the process of establishing 12 CETPs and upgrading eight existing ones
DAT has been forced to raise 80 per cent of the outlay through borrowings

Tirupur: The dyeing units affiliated to Dyers Association of Tirupur (DAT) look to be in dire straits as their plea for financial assistance from the Central Government to offset the cost incurred by them to establish Common Effluent Treatment Plants (CETPs) remains unanswered till now.

Process begins

The dyers here are now in the process of establishing 12 CETPs and upgrading another eight existing ones at a total outlay of Rs. 798.81 crore to ensure zero discharge as stipulated by Tamil Nadu Pollution Control Board.

The Madras High Court has also directed the dyers to expedite the establishment of CETPs to prevent groundwater depletion and stop indiscriminate discharge of pollutants into the water bodies. DAT general secretary K. Krishnan told The Hindu that unless the Central Government came out with a special package, closure of dyeing units would become imminent as the cost of the project involved was huge.

“Since a majority of the dyeing units fall in the small-scale sector, DAT has been forced to raise 80 per cent of the outlay through commercial borrowings,” he added.

Promise

He pointed out that the Chief Minister had already announced on the floor of the Assembly that 15 per cent of the project cost would be borne by the state government, 25 per cent to be brought in by the industry and then requested the Centre to assist the dyers with grant.

“Any further delay in the allocation of the grant will lead to closure of units, which constitute an important link in the textile manufacturing chain,” he said.

Disaster

According to him, collapse of the dyeing sector will spell catastrophe to knitwear exports from the Tirupur cluster that generates about Rs 10,000 crore to the foreign exchequer.

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