Mulayam spin to ailing UP handloom industry

More significantly, Mulayam has shunned trade unionism and given his nod for hiring professional managers to run the show. His Cabinet minister Jagdish Singh Rana has begun implementation of the operation, named ‘‘Handloom Revival’’.

Rana has already held several rounds of talks with handloom employees to make them opt for VRS. While some agreed, those who did not were shown the door. Finally, after spending Rs 72 crore on VRS in June, the government succeeded in bringing down the number of employees from 1,800 to 599.

‘‘Earlier, the government was spending Rs 1.22 crore to pay these 1,800 employees, the retrenchment brought down the salary expenditure to Rs 35 lakh only,’’ says Rana.

The Uttar Pradesh handloom industry has been facing a severe slump over the years. The annual turnover had come down from Rs 140 crore in 1994 to less than Rs 20 crore.

The department was on the verge of closure last year, as employees did not get salaries for six months. Then, the state government came up with a revival package, offering a grant of Rs 20 crore. The proposal was sent to the Centre which agreed to grant an equal amount, but on condition that the state government bring down the number of employees to 599.

Interestingly, while the handloom industry went through a constant decline, facts related to the industry remained static:

• UP still produces one fourth of the total handloom products in the country

• There are 6.64 lakh weavers here

• They are working on 2.24 lakh looms

• The produce is sold in 122 showrooms across the country

Working extensively on Operation Handloom Revival, the government not only cut down on employees, it also reduced the number of showrooms. ‘‘Twenty-two showrooms, incurring losses year after year, have been closed down,’’ Rana told The Indian Express.

The Mulayam Government also changed the manner of purchase. While the purchase committee was earlier dominated by trade union members, now showroom mangers decide on the products to be bought, keeping in mind the demand in the area.

‘‘The managers will ensure that the showrooms not only reap profits but that a particular part of the profit goes towards the welfare of weavers as well,’’ Rana said.