RS-TEXTILES

Special scheme for knitwear sector formulated
    New Delhi, Jul 25 (PTI) The government on Thursday
informed the Rajya Sabha that efforts to revive sick cotton
mills in Kanpur in Uttar Pradesh have failed and a revival
plan for the knitwear sector has been prepared.
    Replying to supplementaries during Question hour, Textile
minister Smriti Irani also told the House that 78 cotton mills
have shut down across the country ever since the incorporation
of National Textile Corporation, despite efforts to revive
them.
    She also informed that under the Board for Industrial and
Financial Reconstruction (BIFR), nine mills were closed in
Gujarat state.
    "Efforts were made for revival of cotton mills in Kanpur
being run under purview of British India Corporation, but all
such efforts proved futile.
    "Modernisation of cotton mills was attempted, but after
all attempts to revive the mills failed, a panel of the Niti
Aayog HAS suggested disinvestment of BIC," she told the
House.
    Irani said when the Kanpur industry interacted with the
Textile ministry for revival of textile sector, it was found
that the knitwear sector required revival efforts.
    "A special scheme for the knitwear sector has been
formulated by the Textile Ministry and we are working together
with industry stakeholders and have lauded this scheme," she
said.
    In response to another question on dumping of products by
Bangladesh, the minister said challenges with regard to
textiles produced particularly in Bangladesh, the access given
to Bangladeshi investments and industry through the Safta
route is something that has been discussed with the Minister
of External Affairs and the Commerce Minister, along with the
Textile industry.
    "We are trying to invoke the issue of origin so that we
can ensure that our markets are not flooded via Bangladesh
with Chinese goods," she said.
    Irani also said that 78 mills have hence been closed
since the incorporation of NTC. They were closed after due
consideration even by the previous government after efforts to
revive them failed.
    In her written reply, the minister also said the mills
have been closed in the country over the years mainly owing
to financial problems and labour related issues.
    She said as far as National Textile Corporation (NTC) is
concerned, the NTC was incorporated in 1968 with the main
objective of managing affairs of sick textile undertakings
taken over by the Government.
    "NTC suffered heavy losses due to obsolete machinery and
other reasons. Based on BIFR approved Revival Scheme of NTC
i.e. Modified Revival Scheme (MS)-08, NTC has closed 78 mills
under Industrial Dispute (ID) Act, 1947, on account of being
unviable; modernised its 23 mills on its own; and revived 5
mills through Joint Ventures(JV) arrangements," she said,
adding it has no mandate under BIFR scheme to revive unviable
mills closed under Industrial Dispute Act, 1947.
    Irani said this ministry has launched many schemes like,
Scheme for Integrated Textile Parks (SITP), Scheme for
Integrated Textile Processing Development (IPDS), and Amended
Technology Upgradation Fund (ATUFS) which are aimed at
strengthening the textile industry and thereby improving
productivity, sustainability and employment opportunities.
    "In SITP, total 59 textiles parks are sanctioned, out of
which 22 parks have been completed. Govt of India has
supported these parks with total Rs 780.22 Crores as subsidy.
These parks have attracted Rs 9038.96 Crores as investment and
so far it has generated employment for 82612 persons.
    "Under the TUFS/ATUFS an amount of Rs 26,548 Crores has
been released as subsidy to textile industry against an
investment of Rs 324,585 Crores during 1999-2019," she said.
    Irani also said the Government has implemented a special
package for employment generation and promotion of exports in
Apparel and Made-ups sector.
    The package includes a slew of measures which are labour
friendly and would promote employment generation, economies of
scale and boost exports, she said, adding it was available up
to March, 2019 for Garment and Made ups units. The following
components are included in the said special package.
    The Textile minister also said the Government is
implementing the Scheme for Integrated Textile Park (SITP)
which provides support for creation of world-class
infrastructure facilities for setting up of textile units in a
Public-Private-Partnership (PPP) model, with a Government of
India grant upto 40 pc of project cost with ceiling limit
of Rs 40.00 crores for each park.
    Irani said the government has sanctioned Rs 27.15 crore
in the budget for 2018-19 in revised estimates and Rs 20 crore
in budget estimates for 2019-20 for textile parks. PTI SKC
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(This story has not been edited by THE WEEK and is auto-generated from a PTI feed.)