Banks told to recast Rs 35,000 crore debt for textile sector


NEW DELHI: The government on Tuesday asked banks to restructure loans worth Rs 35,000 crore for the textile sector, bringing relief to the sector, which is reeling under the impact of volatile yarn prices and slowdown in major markets. Banks have an exposure of Rs 1.56 lakh crore to the sector, which means just under a quarter of the loans will be restructured in one of the biggest loan recast programmes. 

The long-pending demand of the industry will benefit around 2,000 cotton textiles mills, a majority of which are in Tamil Nadu, and the man-made fibre segment in Gujarat, where assembly elections are due later this year. Of the overall package, nearly Rs 27,000 crore is expected to be pocketed by the cotton mills, while Rs 3,600 crore will flow to the man-made segment. Before assembly elections in Uttar Pradesh, the government had announced a package for weavers, which included softer loan terms. 

The latest lifeline to the largest employer in the manufacturing sector comes at a time when industrial growth and exports have slowed and there is an all-round demand to boost economic activity. A healthier financial position of Indian textile companies also augurs well for their export competitiveness. The package, finalized after a meeting between finance minister Pranab Mukherjee and commerce, industry and textiles minister Anand Sharma, will include a two-year interest moratorium and conversion of eroded working capital into longer-term loans with three to five year term. 

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Soon, aggressive textile policy for upliftment of cotton industry


SURAT: Chief minister Narendra Modiannounced that the state government is in the process of formulating an aggressive textile policy for the upliftment of the cotton textile industry and taking the ‘made in Gujarat’ brand to the foreign shores. 

Modi said the government is working on five ‘F’- farm, fibre, fabric, fashion and foreign. 

“We are the leading cotton producing state in the country. Now we want to transform the state’s cotton industry as a leader in yarn manufacturing, cloth manufacturing, readymade garment manufacturing and later we will reach out to the world market with our products,” he said. 

“Why there is a need to export our cotton? All the cotton produced will pass from different stages of manufacturing in the state itself and then we will capture the world market. We want the world buyers to flock to Gujarat in search of readymade garments,” he added. 

Interestingly, Modi himself had hit out at the UPA government for banning cotton exports recently. 

Modi’s announcement has not gone down well with the textile entrepreneurs, weavers and industrialists in the city. Reason: Surat is the country’s biggest man-made fibre industry and it is facing a tough competition from the cotton yarn and cotton garments in the domestic as well as international markets. 

“The aggressive policy for textile as announced by the CM is only for the cotton sector. Surat is a man-made fibre hub and there is nothing for us to welcome the announcement,” said a leading textile entrepreneur 

He added, “The formulation of the new textile policy for cotton by the state government would put the city’s man-made fibre hub at risk. Many industrialists, weavers and entrepreneurs may turn to cotton-based textile production instead of using polyester yarn.”

Thai delegation explores business opportunities in Gujarat


VADODARA: A trade delegation of Thai representatives led by ambassador Pisan Manawapat visited the city on Tuesday to gauge industrial and infrastructure development in and around it.

Manawapat with around half-a-dozen other officials from Thailand met officials at Vadodara Municipal Corporation (VMC), Vadodara Chamber of Commerce and Industry (Vand are scheduled to visit key industrial units around the city on Wednesday.

VMC commissioner Ashwini Kumar said the delegation was on a visit to familiarize itself with the business environment in the state. “They discussed urban and industrial development in and around Vadodara extensively with us. They were keen to know how the city would develop in the coming years and what opportunities would emerge here,” he added.

Manawapat said the delegation was there to see the potential for business in the state. “So far, business houses from Thailand have had a good presence in south India. We will introduce Gujarat as a destination for business to them,” he said. The ambassador said that he had also been briefed regarding the Delhi-Mumbai Industrial Corridor. “We will look into the opportunities available on this front too,” he said. He added that prominent Thai construction companies had presence in India and were involved in infrastructure projects.

At VCCI, the delegation met industrialists across a broad spectrum of industrial sectors. Even representatives of education institutes and NGOs were present. “Thai prime minister Yingluck Shinawatra has announced a Free Trade Agreement with India. Once this is signed, we expect the trade between the two nations to multiply and bilateral trade may exceed 10 billion USD,” Nilesh Shukla, senior vice-president, VCCI, said.

Former VCCI president Jatin Bhatt said the Thai delegation was particularly impressed by the power situation in the state. “They are eyeing sectors like power, textiles, automobiles and electronics,” he added.

17 textile units stop operations in SIPCOT


Erode,May 18 (PTI) Seventeen textile dyeing units in SIPCOT Industrial Growth Centre at Perundurai stopped operations after the 90-day time limit granted by the Pollution Control Board lapsed on Wednesday, PCB officials said today. An official said 18 months ago, PCB had ordered the closure of the 17 textile units for “flouting” PCB rules. They approached the court and on its direction, they approached the PCB who granted 90 days time to enable them fulfil pollution control norms. Claiming that they have fulfilled PCB norms, Textile unit sources said they will again approach PCB seeking a permanent license to start operations. Meanwhile, it was stated that the PCB will monitor the pollution level periodically and criminal action would be taken for any violations like discharge of untreated effluents into water bodies.

Made in Italy textile machinery workshops in India



ACIMIT, the Association of Italian Textile Machinery Manufacturers, is organizing two important workshops in Mumbai and Ichalkaranji (India). Italy’s response to the strong demand for technology by the local textile industry.

India is the world’s second largest market in terms of value for textile machinery imports (amounting to 1.11 billion euros). Italian technology is especially in demand. In fact, 133 million euros worth of Italian textile machinery was sold to India in 2011, a 19% increase compared to the previous year.

“Our companies have been observing developments in India for some time now,” states Sandro Salmoiraghi, President of ACIMIT, “Business opportunities have multiplied, particularly in recent years, owing in part to the incentives set up by the Indian authorities to promote the modernization of local industry.”

To meet this growing demand for Made in Italy textile machinery, ACIMIT is organizing two important events with Indian textile manufacturers. Mumbai and Ichalkaranji will play host to two workshops to be held on May 8 and 10, at which various Italian machinery manufacturers will be presenting their latest technology proposals.

The following Italian machinery manufacturers will be taking part: Canalair, Cs Automazione, Fimat, Flainox, Itema, Jaeggli Meccanotessile, Ptmt, Smit, Testa. The workshops, organized by ACIMIT, are part of the “Machines Italia in India” program financed by the Ministry for Economic Development, which has entrusted the organization to the Federmacchine group (the Federation of Italian Manufacturers of Capital Goods).

“Machines Italia in India” is an initiative aimed at supporting the internationalization activities of businesses in the sector, in an area that is currently experiencing some of the most intense economic development anywhere in the globe.

 
ACIMIT

Textiles key sector in India’s new manufacturing policy


The Indian textile sector has been identified as a key-labour intensive industry in the National Manufacturing Policy. The new manufacturing policy came in to effect three months back and was being debated and discussed since the last 18 months. 

The National Manufacturing Policy envisages precisely a 14 percent annual growth rate in the overall production sector for the next 10 years. Alongside it also envisions, generating 100 million manufacturing jobs in the same period.

“The textile industry is a labour-intensive industry which the policy has recognized as a focus area, Mr. Ajay Shankar, Member Secretary of the National Manufacturing Competitiveness Council (NMCC) told fibre2fashion.

He added, “We have a vision for its growth to take off the way we want it to take off so, we need to work together to address the short term problems which the industry is facing”.

“To ensure the growth rate is achieved under the circumstances, we need to first work out what is possible and then target those growth rates”, he revealed.

Providing details about the new policy, he said, “The National Manufacturing Policy aims strictly at success in manufacturing. It aims at precisely 14% growth rate for the next 10 years and create 100 million jobs in manufacturing sector. 

“The policy constitutes a very comprehensive strategy and there are certain points which need to be addressed. One element which is very important is the skill mission so that there are enough people with employable skills, so that the availability of skilled manpower is ahead of the jobs in terms of demand rather than being behind them. With this view the skill mission has been launched. 

“Another key element is that we must have industrial land available readily at feasible prices. This we will ensure in partnership with the state governments. The policy also envisages the creation of the National Industrial Manufacturing Zones which will be spread around an area of about 5,000 hectares. 

“It will be developed as Industrial Manufacturing Zones and then there will be an entire ecosystem for manufacturing in these areas which is large enough and has world class infrastructure”, he concluded by informing. 

TN textile industry unhappy with power tariff hike


The power tariff increase by Rs 1.50 per unit has come as a rude shock for the ailing textile industry, Southern India Mills’ Association (SIMA) said on Friday.
Reacting to the new power tariff announced by Tamil Nadu Electricity Regulatory Commission (TNERC), SIMA Chairman, S Dinakaran said the association was having a lot of faith on TNERC that it will follow some rationale in fixing the revised tariff.

Though Tamilnadu Generation and Distribution Corporation (TANGEDCO) had proposed hike of Re 1 per unit for the High Tension (ht) consumers, TNERC has recommended much higher tariff than the demand, he said.

Dinakaran also said such an abnormal power cost will lead to permanent closure of over 2,000 spinning mills, which would have cascading effect on hand loom, power loom, garmenting and other labour intensive sectors in the state.

The proposed tariff will be the highest in the country for HT consumers, Dinakaran said and appealed to the Chief Minister Jayalalithaa to exempt the ailing textile industry from the tariff hike at least for the next two years.

Meanwhile, Tirupur Exporters’ Association (TEA) requested the TNERC to reduce the power tariff hike to 20 per cent for exporting units. TNERC had hiked tariff by over 37 per cent.

In a press release, TEA president, A Sakthivel said a special consideration has to be given for the exporters, who have to compete in the international market in a cost effective manner.

The knitwear exporting units have been already affected by various adverse factors and at this juncture, the increase in power tariff to this extent would make them less competitive, he said.