Mill owners flay govt inertia

Damani said the textile industry has been anxiously waiting for announcement of policy package to permit development and redevelopment of surplus land, which will make available interest free funds so badly required for undertaking long pending modernisation, rationalisation and restructuring programmes.

In February 1996, the state government constituted a highlevel study groupheaded by noted architect Charles Correa for evolving plans for integrated development of mill lands. Simultaneously, a ban was imposed on further development of mill lands. Although, the committee has submitted its report long ago, the matter has been hanging fire for over three years despite protracted dialogues with the industry as well as the labour unions, Damani pointed out.

Damani hoped that the alliance government will take a pragmatic view for revival of organised sector and for ensuring job continuity for its workers. “The forward looking government will certainly like to avoid more closures of composite mills in the metropolis, which will lead to a law and order situation,” Damani remarked.

According to a MOA office bearer, the approach of the alliance government towards the problems faced by the crisis-ridden textile industry is negative as after it came to power in March 1995, it had not taken any concrete steps for the revival of sick and closed units in the metropolis.

“The alliancegovernment has taken decision in only those cases where either the high court or the Board of Industrial and Financial Reconstruction has passed strictures against the government for threatened to initiate contempt proceedings either against the Chief Secretary or the Textile Secretary,” the office bearer pointed out.

The office bearer said a record number of seven proposals for development and redevelopment are pending before the government for more than five years, but no decision has been taken for obvious political reasons.

Giving details of the modernisation plans, the office bearer said the Hindusthan Spinning Mill had submitted a Rs 34.82 crore modernisation plan on March 6, 1992, Ruby Mills had proposed modernisation plan of Rs 18.50 crore on January 17, 1992, Piramal Industries (February 13, 1993), Victoria Mills (Rs 16.03 crore on September 23, 1994), Simplex Mills (Rs 7.14 crore on December 8, 1994) and Bombay Dyeing (Rs 25 crore on March 22, 1995).

All these plans envisaged generation ofadditional funds by developing or disposing of the surplus land for revival and modernisation of the units. While the Hindusthan Mills was expecting Rs 10 crore from disposal of surplus land, Ruby Mills was expecting Rs 11 crore, Piramal (Rs 10 crore), Victoria (Rs 15 crore), Simplex (Rs 5.18 crore) and Bombay Dyeing (Rs 15 crore). In addition, all these mills had informed the government that leading financial institutions had agreed to come to their rescue in the revival plan.

“Ofcourse, all these expectations were based on the high prices of lands and real estates in the metropolis. Now, neither the government nor the mill owners are sure of the same returns in view of the unprecedented recession in the construction industry,” the office bearer added.

According to a senior Shiv Sena Minister, it was high time for the government to address itself to the problems faced by the textile industry. “While a record number of 28 textile mills in the metropolis are either sick or closed, the number of workershave been drastically reduced from 2.50 lakh in 1981 to less than 30,000 in August 1998,” the Minister added.

The Minister admitted that owing to serious differences between Shiv Sena and BJP over disposal of surplus mill land, the alliance was unable to take a decision on the vexed issue. “It is well known fact that Shiv Sena is in favour of disposal, while BJP is against any such proposal,” the Minister remarked.