"Discussion regarding spinning industries in Tamil Nadu government's special meeting on Friday"
The Tamil Nadu Textiles Department has called a meeting with the spinning industries in the state on Friday to discuss various issues being faced by the sector. The meeting took place in the backdrop of production strike by Coimbatore-based MSME units and open end spinning mills in protest against high electricity charges.
A letter written by the department to the six spinning unions said the meeting would be chaired by state Finance Minister Thangam Thennarasu and in the presence of the Minister for Handlooms and Textiles. These are the South India Spinners Association; Indian Spinning Mill Owners Association (OSMA); Open-End Spinning Mills Association; Recycle Textile Federation and SIMA – all five are based in Coimbatore and Tamil Nadu Spinning Mills Association is based in Dindigul.
The spinning mills in the major production hub of Coimbatore are going through a crisis. The Open-End Spinning Mills Association – a technique for making yarn without using open-end spinning spindles – whose members resorted to a production strike from July 10, while MSME mills in the textile city stopped production and sale of yarn from July 15. Did it Because of the heavy losses they have caused.
raw material export
OSMA President G Arulmozhi told BusinessLine that exports of cotton waste, the main raw material of open-end spinning mills, should be restricted through levying export duty and they should be made available to domestic open-end spinning mills. He said that the interest on bank loan should be reduced to 7.5 per cent as the entire textile sector is in big trouble.
He said that the main raw material of OE spinning mills is cotton waste, and exports should be restricted by imposing export duty and they should be made available to domestic OE spinning mills.
There are 600 open end spinning mills in Tamil Nadu. These mills produce 25 lakh kg of gray cotton yarn from cotton waste and 15 lakh kg of colored yarn from used plastic pet bottle fibre. He said these mills provide employment to about one lakh direct workers and another two lakh indirectly producing goods worth about Rs 27,000 crore. He said that there could be a loss of Rs 30 crore per day due to the production strike.
Demand charges
During the meeting Tamil Nadu Spinning Mills Association (TASMA) will urge the state government to invoke Section 108 of the Electricity Act 2003, to make HT consumers pay monthly demand charges to the extent of 20 per cent of their sanctioned amount only. Claiming call fee up to the demand or only the demand recorded and not invariably at 90 per cent level. This will help industry to pay exact demand charges to the extent of their recorded demand and help industries to come out of their distress as an immediate measure till normalcy is achieved.
“At the meeting, we urge the state government to put in its good offices to pressurize the Center to remove 11 per cent import duty on cotton imports and to restructure the loans of the mills to come out of this unprecedented situation. Advise RBI to issue suitable policy circular.
Regards
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