Rana8217;s revival plan for textile mills

Rana also disclosed that the ministry would create a Rs 28,000 crore Technological Upgradation Plan TUP under which measures for upgrading the existing old technology in textile units would be taken.

The Industrial Development Bank of India IDBI has conceded the ministry8217;s request to provide part of the funds, while other financial institutions would be approached soon with similar requests.

Listing a series of measures to strengthen the textileindustry, the Union Minister said the existing laws governing high fiscal levies on the industry would be simplified, with the ministry giving serious thought to a suggestion to shift the excise duty from fabrics to yarn.

quot;The measure will not only provide a much-needed boost to the industry, but also check large-scale evasion of excise,quot; he said.

The minister said the BJP8217;s concept of Swadeshi would in no way adversely affect the textile exports. quot;We are aware of the World Trade Organisation talking about removing trade barriers among different countries. In fact, the Swadeshi concept would encourage indigenous industry generate more production and employment in our country,quot; he claimed.

Asserting that the textile ministry was committed to rehabilitate nearly 75,000 jobless workers in Gujarat, Rana said the Centre had already provided Rs 72 crore from the Textile Workers8217; Rehabilitation Fund TWRF to the State, while efforts would be made to release the remaining Rs 22 crore from the TWRF at theearliest.

Of the 56 composite textile units the State, only 10 are operating, while as many as 40 of the 85 spinning and weaving mills have been closed down. quot;My ministry will ensure that these closed units are revived at the earliest,quot; he said.

The minister said he was also concerned about the plight of thousands of workers of the 120 closed National Textile Corporation NTC mills in the country, which include 10 from Gujarat. quot;This problem can be solved in two ways: by introducing Voluntary Retirement Scheme VRS or reviving the closed units through modernisation of technology,quot; he explained.

Despite the closure of its units, NTC has been paying wages to the workers to the tune of Rs 450 crore per annum, while the accumulated loss incurring the closed mills runs into whopping Rs 4,400 crore per year.

quot;We cannot afford to sit back and watch this situation. The problem will have to be solved by either initiating a revival process or introducing VRS on the lines of the one introduced by Gujarat whichhas already paid Rs 250 crore under the VRS to score of workers of the closed STC units,quot; Rana said.

The minister said the Centre was not averse to the recommendation of the ATIRA that some of the closed NTC units in the state could be revived.