Lok Sabha Question No. 19 (STARRED), answered on 2017-02-02
Subject: Losses in Modernised NTC Mills
Ministry: TEXTILES
Asked by: HARISHCHANDRA DEORAM CHAVAN

## LOK SABHA STARRED QUESTION NO.*19 TO BE ANSWERED ON 02.02.2017

## LOSSES IN MODERNISED NTC MILLS

## *19.   SHRI HARISHCHANDRA CHAVAN:

Will the Minister of TEXTILES वस्त्र मंरी be pleased to state:

- (a) whether the mills under the National Textile Corporation (NTC) which were modernized recently are incurring losses;
- (b) if  so,  the  details  thereof  indicating  their  losses  and  the  reasons  for  the said loss, mill-wise; and
- (c) whether  steps  are  being  taken  to  make  these  modernized  NTC  mills profitable and if so, the details thereof?

## उत्तर

## ANSWER

## वस्त्र मंरी ( )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

- (a) to (c): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF THE LOK SABHA STARRED QUESTION NO.*19 TO BE ANSWERED ON 02.02.2017.

(a) & (b): National Textile Corporation (NTC) has 23 operational Mills, out of which,  8 mills  have  been  modernised,  13  mills  have been  partially modernised and 2 mills are not yet modernised.  Mill wise Profit/loss position for the years 2014-15, 2015-16, & April-September, 2016 is given at Annexure.

The reasons for the losses mainly in the mills yet to be modernized are attributable to factors such as (i) Incomplete modernization; (ii) Higher power costs due to purchase from  various electricity boards vis.-a-vis. private purchase;  (iii)  Higher  man/machine  ratio  resulting  in  higher  labour  cost;  and (iv) Sub-optimal quality of Yarn resulting in lower sale rate.

(c): The  efforts  made  to  make  the  modernized  mills  profitable  include  the following:-

- I. Improving  technology  by  way  of  induction  of  strategic new  machines  like  Blow  Room,  Cards,  Auto-coner  and Ring Frames, etc., in different mills;
- II. Increasing  sale  realization  by  way  of  value  addition  to product like production of Slub  Yarn,  Compact  Yarn, Mélange, Lycra, Sewing thread Yarn and increasing Combed Yarn/Double Yarn production;
- III. Keeping  a  watch  on  quality  parameters  by  adding  testing equipment  like  Uster,  Advanced  Fiber  Information  System etc.; and
- IV. Adopting  Energy  Conservation  measures  in  modernized mills such as use of Energy efficient LED lights, invertors, Solar Plants installation, etc.

| ANNEXURE                                                                         | ANNEXURE                                                                         | ANNEXURE                                                                         | ANNEXURE                                                                         | ANNEXURE                                                                         | ANNEXURE                                                                         |
|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|
| NATIONAL TEXTILE CORPORATION LIMITED Mill wise Profit/Loss Position for the year | NATIONAL TEXTILE CORPORATION LIMITED Mill wise Profit/Loss Position for the year | NATIONAL TEXTILE CORPORATION LIMITED Mill wise Profit/Loss Position for the year | NATIONAL TEXTILE CORPORATION LIMITED Mill wise Profit/Loss Position for the year | NATIONAL TEXTILE CORPORATION LIMITED Mill wise Profit/Loss Position for the year | NATIONAL TEXTILE CORPORATION LIMITED Mill wise Profit/Loss Position for the year |
| 2014-15,2015-16 &April-Sept.,16                                                  | 2014-15,2015-16 &April-Sept.,16                                                  | 2014-15,2015-16 &April-Sept.,16                                                  | 2014-15,2015-16 &April-Sept.,16                                                  | 2014-15,2015-16 &April-Sept.,16                                                  | 2014-15,2015-16 &April-Sept.,16                                                  |
|                                                                                  |                                                                                  |                                                                                  | 2014-15                                                                          | 2015-16                                                                          | April-Sept.,16                                                                   |
| S. No.                                                                           | State wise Name of Mills                                                         | STATES                                                                           | Cash Profit/ Loss                                                                | Cash Profit/ Loss                                                                | Cash Profit/ Loss                                                                |
|                                                                                  |                                                                                  |                                                                                  | Rs. Lakhs                                                                        | Rs. Lakhs                                                                        | Rs. Lakhs                                                                        |
| A                                                                                | Modernised Mills                                                                 | Modernised Mills                                                                 | Modernised Mills                                                                 | Modernised Mills                                                                 | Modernised Mills                                                                 |
| 1                                                                                | Cannanore Spg &Wvg Mills                                                     | KERALA                                                                           | 485.90                                                                           | 405.44                                                                           | 120.02                                                                           |
| 2                                                                                | Sri Rangavilas Mills                                                             | TAMILNADU                                                                        | -85.45                                                                           | -199.4                                                                           | -23.08                                                                           |
| 3                                                                                | New Bhopal Textile Mills                                                         | MADHYA PRADESH                                                                   | -688.78                                                                          | -577.59                                                                          | -245.29                                                                          |
| 4                                                                                | Burhanpur Tapti Mills                                                            | MADHYA PRADESH                                                                   | 388.17                                                                           | 142.39                                                                           | 18.33                                                                            |
| 5                                                                                | New Minerva Mills                                                                | KARNATAKA                                                                        | -59.41                                                                           | -113.26                                                                          | 78.03                                                                            |
| 6                                                                                | Finlay Mills Achalpur                                                            | MAHARASHTRA                                                                      | 212.74                                                                           | 406.85                                                                           | 46.23                                                                            |
| 7                                                                                | Rajnagar Textile Mills                                                           | GUJARAT                                                                          | -764.31                                                                          | -605.87                                                                          | -42.25                                                                           |
| 8                                                                                | Arati Cotton Mills                                                               | WEST BENGAL                                                                      | -408.92                                                                          | -801.61                                                                          | -377.94                                                                          |
| B                                                                                | Partially Modernized Mills with Modernization level 50-60%                       | Partially Modernized Mills with Modernization level 50-60%                       | Partially Modernized Mills with Modernization level 50-60%                       | Partially Modernized Mills with Modernization level 50-60%                       | Partially Modernized Mills with Modernization level 50-60%                       |
| 1                                                                                | CannanoreSW Mahe                                                                 | PUDUCHERRY                                                                       | -162.61                                                                          | -532.76                                                                          | -203.97                                                                          |
| 2                                                                                | Kerala Lakhmi Mills                                                              | KERALA                                                                           | -96.97                                                                           | -707.19                                                                          | -290.6                                                                           |
| 3                                                                                | Vijayamohini Mills                                                               | KERALA                                                                           | 12.27                                                                            | -391.48                                                                          | -174.28                                                                          |
| 4                                                                                | Cambodia Mills                                                                   | TAMILNADU                                                                        | -281.78                                                                          | -710.68                                                                          | -291.93                                                                          |
| 5                                                                                | Pankaj Mills                                                                     | TAMILNADU                                                                        | -372.58                                                                          | -606.99                                                                          | -306.74                                                                          |
| 6                                                                                | Pioneer Spinners                                                                 | TAMILNADU                                                                        | -368.16                                                                          | -688.96                                                                          | -157.64                                                                          |
| 7                                                                                | Kaleeswarar B Mill                                                               | TAMILNADU                                                                        | -137.09                                                                          | -491.52                                                                          | -135.16                                                                          |
| 8                                                                                | Coimbatore Murugan Mills                                                         | TAMILNADU                                                                        | -335.32                                                                          | -336.87                                                                          | -87.06                                                                           |
| C                                                                                | Partially Modernized Mills with Modernization level 20-50%                       | Partially Modernized Mills with Modernization level 20-50%                       | Partially Modernized Mills with Modernization level 20-50%                       | Partially Modernized Mills with Modernization level 20-50%                       | Partially Modernized Mills with Modernization level 20-50%                       |
| 1                                                                                | Algappa Textile Mills                                                            | KERALA                                                                           | -289.80                                                                          | -580.32                                                                          | -218.11                                                                          |
| 2                                                                                | Tata Mills                                                                       | MAHARASHTRA                                                                      | -1902.54                                                                         | -1937.11                                                                         | -1060.79                                                                         |
| 3                                                                                | India United Mills No. 5                                                         | MAHARASHTRA                                                                      | -858.08                                                                          | -1225.68                                                                         | -621.7                                                                           |

| 4   | Podar Mills                   | MAHARASHTRA          | -1284.69             | -1360.82             | -827.94              |
|-----|-------------------------------|----------------------|----------------------|----------------------|----------------------|
| 5   | Barshi Textile Mills          | MAHARASHTRA          | -279.40              | -451.77              | -197.59              |
| D   | Non Modernized Mills          | Non Modernized Mills | Non Modernized Mills | Non Modernized Mills | Non Modernized Mills |
|     | Tirupathi Cotton Mills        | ANDHRA PRADESH       | -260.30              | -231.33              | -91.09               |
|     | Coimbatore S&W Coimbatore | TAMILNADU            | -188.77              | -382.62              | -173.77              |
|     |                               | GRAND TOTAL          | -7725.88             | -11979.15            | -5264.32             |

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