Lok Sabha Question No. 79 (STARRED), answered on 2015-12-03
Subject: Revival of Sick/Closed Textile Mills
Ministry: TEXTILES
Asked by: N.K. PREMACHANDRAN

## LOK SABHA STARRED QUESTION NO.79 TO BE ANSWERED ON 03.12.2015

## REVIVAL OF SICK/CLOSED TEXTILE MILLS

## *79.   SHRI N.K. PREMACHANDRAN:

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

- (a) the number and details of textile mills operating, lying sick and closed at present along with the reasons for their closure in the country, State-wise;
- (b) whether the Government has received any representations for the revival of the  sick  and  closed  mills  including  Parvathy  Mills  Limited,  Kollam  in  the country;
- (c) if so, the details thereof and the action taken by the Government thereon; and
- (d) the  steps  taken  by  the  Government  for  the  revival  of  these  mills  and safeguard the interests of the workers of sick and closed mills?

## उत्तर

## ANSWER

## वस्त्र राज  ् य मंरी ( स्त्वतंर प्रभार ) ( श्री संतोष कु मार गंगवार )

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF TEXTILES (SHRI SANTOSH KUMAR GANGWAR)

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

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  THE  LOK SABHA STARRED QUESTION NO.*79 TO BE ANSWERED ON 03.12.2015.

(a) to  (d)  State  wise  position  of  working  and  sick  textile  mills  is  given  as Annexure - 1 Table 1A. Reason wise details for the sick mills is given in Table 1B .

Relevant details for the National Textile Corporation Limited (NTC), a Central Public Sector Undertaking are at Annexure 2 respectively.

Parvathy  Mills,  Kollam  is  one  of  the  11  mills  under  NTC which are slated for revival under Joint Venture route as per Board for Industrial and Financial Reconstruction (BIFR) approved scheme. However, the Memorandum of Undertaking (MoU), signed with the Joint  Venture  partner,  was  terminated  as  the  JV  partner  failed  to enter into definitive agreement with NTC within specified time.  The JV partner has challenged the termination of MoU in the High Court of Delhi and the matter is sub-judice at present.

The  Government  has  no  scheme  for  revival  of  the  sick textile mills.  In order to give relief to the workers rendered jobless due  to  permanent  closure  of  textile  mills  in  private  sector,  Textile Worker's Rehabilitation Fund Scheme (TWRFS) has been introduced by  Govt.  of  India  with  effect  from  15-9-1986  with  the  objective  of giving interim relief to the workers rendered jobless for a period of three years on a tapering basis, wage equivalent to 75% in the first year, 50% in the second year and 25% in the third year. The mills closed on or after 5.6.1985 are covered under TWRFS.

NTC had been implementing BIFR approved revival scheme MS08 wherein however, it has no mandate to revive the mills closed under Industrial Disputes Act.  NTC has relieved the willing workers after paying the  due  compensation  under  approved  Modified  Voluntary  Retirement Scheme.

*****

Annexure-1 (Table 1A) The number and details of textile mills operating, lying sick and closed (Non SSI) as on 30.09.2015 are as under :

| Sr no   | State                  | No. of Mills in operation   | No. of mills lying sick/closed   |
|---------|------------------------|-----------------------------|----------------------------------|
| 1.      | Andhra Pradesh         | 145                         | 22                               |
| 2.      | Assam                  | -                           | 7                                |
| 3.      | Bihar                  | -                           | 4                                |
| 4.      | Chattisgarh            | -                           | 1                                |
| 5.      | Daman and Diu          | -                           | 1                                |
| 6.      | Dadar and Nagar Haveli | 11                          | -                                |
| 7.      | Goa                    | 1                           | -                                |
| 8.      | Gujarat                | 47                          | 42                               |
| 9.      | Haryana                | 31                          | 40                               |
| 10.     | Himachal Pradesh       | 14                          | 2                                |
| 11.     | Jammu & Kashmir        | 1                           | 1                                |
| 12.     | Jharkhand              | 1                           | -                                |
| 13.     | Karnataka              | 20                          | 20                               |
| 14.     | Kerala                 | 17                          | 17                               |
| 15.     | Madhya Pradesh         | 40                          | 19                               |
| 16.     | Maharashtra            | 132                         | 64                               |
| 17.     | Manipur                | -                           | 1                                |
| 18.     | Orissa                 | 3                           | 13                               |
| 19.     | Pondicherry            | 8                           | 2                                |
| 20.     | Punjab                 | 95                          | 18                               |
| 21.     | Rajasthan              | 42                          | 20                               |
| 22.     | Tamil Nadu             | 757                         | 212                              |
| 23.     | Uttar Pradesh          | 15                          | 52                               |
| 24.     | Uttaranchal            | 5                           | 4                                |
|         | West Bengal            | 14                          | 16                               |
| 25.     | T o t a l              | 1399                        | 578                              |

## Reason for Closure of Cotton/ Man-Made Fibre Textile Mills (Non SSI) as on 30.09.2015:

| Sr. No.   | Reason of closure       |   No. of Mills | Reason wise (Percentage)   |
|-----------|-------------------------|----------------|----------------------------|
| 1         | Financial difficulties  |            415 | 71.80 %                    |
| 2         | Lock out                |             14 | 2.42 %                     |
| 3         | Other reason            |            103 | 17.82 %                    |
| 4         | Strike / Labour trouble |             46 | 7.96 %                     |
|           |                         |            578 | 100 %                      |

|    |                                             |                                             |                                             | ANNEXURE -2                                 |
|----|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|
|    | LIST OF 23 MILLS MODERNIZED BY NTC ITSELF   | LIST OF 23 MILLS MODERNIZED BY NTC ITSELF   | LIST OF 23 MILLS MODERNIZED BY NTC ITSELF   | LIST OF 23 MILLS MODERNIZED BY NTC ITSELF   |
| A  |                                             | Sr.NO.                                      | NAMEOFTHEMILLS                              | LOCATION                                    |
|    | ANDHRA PRADESH                              |                                             |                                             |                                             |
|    |                                             | 1                                           | TIRUPATHI COTTON MILLS                      | RENIGUNTA                                   |
|    | GUJARAT                                     |                                             |                                             |                                             |
|    |                                             | 2                                           | RAJNAGAR MILLS                              | AHMEDABAD                                   |
|    | KARNATAKA                                   |                                             |                                             |                                             |
|    |                                             | 3                                           | NEW MINERVA MILS                            | HASSAN                                      |
|    | KERALA                                      |                                             |                                             |                                             |
|    |                                             | 4                                           | ALGAPPA TEXTILE MILLS                       | ALAGAPPANAGAR                               |
|    |                                             | 5                                           | CANNANORE SPG.& WVG.MILLS                   | CANNANORE                                   |
|    |                                             | 6                                           | KERALA LAXMI MILLS                          | TRICHUR                                     |
|    |                                             | 7                                           | VIJAYAMOHINI MILLS                          | TRIVANDRUM                                  |
|    | MADHYAPRADESH                               |                                             |                                             |                                             |
|    |                                             | 8                                           | BURHANPUR TAPTI MILLS                       | BURHANPUR                                   |
|    |                                             | 9                                           | NEW BHOPAL TEXTILE MILLS                    | BHOPAL                                      |
|    | MAHARASHTRA                                 |                                             |                                             |                                             |
|    |                                             | 10                                          | PODAR MILLS                                 | MUMBAI                                      |
|    |                                             | 11                                          | TATA MILLS                                  | MUMBAI                                      |
|    |                                             | 12                                          | INDIA UNITED MILL NO.5                      | MUMBAI                                      |
|    |                                             | 13                                          | BARSHI TEXTILE MILLS                        | BARSHI                                      |
|    |                                             | 14                                          | FINLAY MILLS                                | ACHALPUR                                    |
|    | MAHE                                        |                                             |                                             |                                             |
|    |                                             | 15                                          | CANNANORE SPG.& WVG.MILLS                   | MAHE                                        |
|    | TAMIL NADU                                  |                                             |                                             |                                             |
|    |                                             | 16                                          | PIONEER SPINNERS MILLS                      | KAMUDAKUDI                                  |
|    |                                             | 17                                          | KALEESWARAR MILLS 'B' UNIT                  | KALAYARKOIL                                 |
|    |                                             | 18                                          | CAMBODIA MILLS                              | COIMBATORE                                  |
|    |                                             | 19                                          | COIMBATORE MURUGAN MILLS                    | COIMBATORE                                  |
|    |                                             | 20                                          | PANKAJA MILLS                               | COIMBATORE                                  |
|    |                                             | 21                                          | SRI RANGAVILAS S.& W. MILLS                 | COIMBATORE                                  |
|    |                                             | 22                                          | COIMBATORE SPG &WVGMILLS                    | COIMBATORE                                  |
|    | WEST BENGAL                                 |                                             |                                             |                                             |
|    |                                             | 23                                          | ARATI COTTON MILLS                          | DASS NAGAR                                  |
| B  | LIST OF 5 MILLS MODERNIZED THROUGH JV ROUTE | LIST OF 5 MILLS MODERNIZED THROUGH JV ROUTE | LIST OF 5 MILLS MODERNIZED THROUGH JV ROUTE | LIST OF 5 MILLS MODERNIZED THROUGH JV ROUTE |
|    | MAHARASHTRA                                 |                                             |                                             |                                             |
|    |                                             | 1                                           | INDIA UNITED MILLS NO.1                     | MUMBAI                                      |
|    |                                             | 2                                           | APOLLO TEXTILE MILLS                        | MUMBAI                                      |
|    |                                             | 3                                           | GOLDMOHUR MILLS                             | MUMBAI                                      |
|    |                                             | 4                                           | NEW CITY OF BOMBAY MFG. MILLS               | MUMBAI                                      |
|    |                                             | 5                                           | AURANGABAD TEXTILE MILLS                    | AURANGABAD                                  |

| LIST OF 78 MILLS CLOSED UNDER I.D. ACT   | LIST OF 78 MILLS CLOSED UNDER I.D. ACT   | LIST OF 78 MILLS CLOSED UNDER I.D. ACT                         | LIST OF 78 MILLS CLOSED UNDER I.D. ACT   | LIST OF 78 MILLS CLOSED UNDER I.D. ACT   |
|------------------------------------------|------------------------------------------|----------------------------------------------------------------|------------------------------------------|------------------------------------------|
|                                          | S.No.                                    | NAMEOFTHE MILLS                                                | LOCATION                                 | REASONS OF CLOSURE                       |
| Andhra Pradesh                           | 1                                        | AZAM JAHI MILLS                                                | Warangal                                 | Unviable                                 |
|                                          | 2                                        | NATRAJ SPINNING MILLS                                          | Adilabad                                 | Unviable                                 |
|                                          | 3                                        | ADONI COTTON MILLS                                             | Adoni                                    | Unviable                                 |
|                                          | 4                                        | NETHA SPINNING MILLS                                           | Secunderabad                             | Unviable                                 |
|                                          | 5                                        | ANANTHAPUR COTTON MILLS                                        |                                          | En-mass MVRS                             |
| Assam                                    | 6                                        | ASSOCIASED INDUSTRIES                                          | Chandrapur                               | En-mass MVRS                             |
| Bihar                                    | 7                                        | GAYA COTTON &JUTE MILLS                                        | Gaya                                     | Unviable                                 |
|                                          | 8                                        | BIHAR CO-OPERATIVE MILLS                                       | Mokameh                                  | En-mass MVRS                             |
| Gujarat                                  |                                          | AHMEDBAD JUPITER TEX. MILLS                                    | Ahmedabad                                | Unviable                                 |
|                                          | 9 10                                     | JEHANGIR TEXTILE MILLS                                         | Ahmedabad                                | Unviable                                 |
|                                          | 11 12                                    | MAHALAXMI TEX.MILLS TEX.MILL                                   | Bhavnagar                                | Unviable                                 |
|                                          |                                          | NEW MANEKCHOWK                                                 | Ahmedabad                                | Unviable                                 |
|                                          | 13                                       | PETLAD TEX.MILLS                                               | Petlad                                   | Unviable                                 |
|                                          | 14                                       | RAJKOT TEX.MILLS                                               | Rajkot                                   | Unviable                                 |
|                                          | 15                                       | VIRAMGAM TEX.MILLS                                             | Viramgam                                 | Unviable                                 |
|                                          | 16                                       | RAJNAGAR II                                                    | Ahmedabad                                | Unviable                                 |
|                                          | 17                                       | HIMADARI TEXTILE MILLS                                         | Ahmedabad                                | Unviable                                 |
|                                          | 18                                       | AHMEDABAD NEW TEXTILE MILLS                                    | Ahmedabad                                | En-mass MVRS                             |
| Karnataka                                | 20 21                                    | MYSORE SPG. &MFG. MILLS SHREE YALLAMA COTTON MILLS             | Bangalore Davangere                      | Unviable En-mass                         |
|                                          |                                          | MILLS                                                          | Bangalore                                | MVRS                                     |
| Madhya Pradesh                           |                                          |                                                                |                                          | Relocated at Hassan                      |
|                                          | 22                                       | MINERVA                                                        |                                          |                                          |
|                                          | 23 24 25                                 | BENGAL NAGPUR COTTON MILLS HIRA MILLS INDORE MALWAUNITED MILLS | Rajnandgaon Ujjain Indore                | Unviable Unviable Unviable               |
|                                          | 26 27                                    | SWADESHI TEXTILE                                               | Indore Indore                            | Unviable                                 |
| Maharashtra                              |                                          | KALYAN MALMILLS MILLS                                          |                                          | Unviable                                 |
|                                          | 28                                       |                                                                |                                          | Unviable                                 |
|                                          | 29                                       | INDIA UNITED MILLS NO.2 INDIA UNITED MILLS NO.3                | Mumbai Mumbai                            | Unviable                                 |
|                                          | 32                                       | KOHINOOR MILLS NO.3                                            | Mumbai Mumbai                            | Unviable Unviable                        |
|                                          | 31                                       | KOHINOOR MILLS NO.2                                            |                                          |                                          |
|                                          | 33                                       | JAM MFG. MILLS                                                 | Mumbai                                   | Unviable                                 |

|               | 34   | MODEL MILLS                          | Nagpur       | Unviable              |
|---------------|------|--------------------------------------|--------------|-----------------------|
|               | 35   | R.S.R.G. MILLS                       | Akola        | Unviable              |
|               | 36   | SHRI SITARAM MILLS                   | Mumbai       | Unviable              |
|               | 37   | VIDHARBHA MILLS                      | Achalpur     | Unviable              |
|               | 38   | BHARAT TEXTILE MILLS                 | Mumbai       | Unviable              |
|               | 39   | DIGV IJAY TEXTILE MILLS              | Mumbai       | Unviable              |
|               | 40   | ELPHINSTONE SPG &WVGMILLS            | Mumbai       | Unviable              |
|               | 41   | JUPITER TEXTILE MILLS                | Mumbai       | Unviable              |
|               | 42   | MUMBAI TEXTILE MILLS                 | Mumbai       | Unviable              |
|               | 43   | NEW HIND TEXTILE MILLS               | Mumbai       | Unviable              |
|               | 44   | PODAR PROCESSORS                     | Mumbai       | Unviable              |
|               | 45   | SHREE MADHUSUDAN MILLS               | Mumbai       | Unviable              |
|               | 46   | INDIA UNITED MILLS NO.6 ( DYE Works) | Mumbai       | En-mass MVRS          |
|               | 47   | KOHINOOR MILLS NO.1                  | Mumbai       | En-mass MVRS          |
|               | 48   | FINLAY MILLS                         | Mumbai       | Relocated at Achalpur |
| Punjab        |      |                                      |              |                       |
|               | 49   | DAYALBAGH SPG &WVGMILLS              | Amritsar     | Unviable              |
|               | 50   | PANIPAT WOOLLEN MILLS                | Kharar       | Unviable              |
|               | 51   | KHARAR TEXTILE MILLS                 | Kharar       | En-mass MVRS En-mass  |
|               | 52   | SURAJ TEXTILE MILLS                  | Malout       | MVRS                  |
| Rajasthan     |      |                                      |              |                       |
|               | 53   | EDWARD MILLS                         | Beawar       | Unviable              |
|               | 54   | SHREE BIJAY COTTON MILLS             | Bijianagar   | En-mass MVRS          |
| Uttar Pradesh |      |                                      |              |                       |
|               | 55   | ATHERTON MILLS                       | Kanpur       | Unviable              |
|               | 56   | BIJLI COTTON MILLS                   | Hathras      | Unviable              |
|               | 57   | LAXMIRATTAN COTTON MILLS             | Kanpur       | Unviable              |
|               | 58   | LORD KRISHNA TEX.MILLS               | Saharanpur   | Unviable              |
|               | 59   | MUIR MILLS                           | Kanpur       | Unviable              |
|               | 60   | NEW VICTORIA MILLS                   | Kanpur       | Unviable              |
|               | 61   | RAE BARELI TEX. MILLS                | Raebareli    | Unviable              |
|               | 62   | SHRI VIKRAM COTTON MILLS             | Lucknow      | Unviable              |
|               | 63   | SWADESHI COTTON MILLS                | Kanpur       | Unviable              |
|               | 64   | SWADESHI COTTON MILLS                | Naini        | En-mass MVRS          |
| West Bengal   |      |                                      |              |                       |
|               | 65   | BANGASRI COTTON MILLS                | Sonepore     | Unviable              |
|               | 66   | BENGAL FINE S.&W.MILLS NO.II         | Kataganj     | Unviable              |
|               | 67   | MANINDRA B.T. MILLS                  | Cossim Bazar | Unviable              |
|               | 68   | JYOTI WVG. FACTORY                   | Patipukur    | Unviable              |
|               | 69   | CENTRAL COTTON MILLS                 | Belur        | Unviable              |
|               | 70   | SHREE MAHALAXMI COTTON               | Palta        | Unviable              |
|               | 71   | BENGAL FINE S.&W.MILLS NO.I          | Konnagar     | Unviable              |
|               | 72   | BENGAL LUXMI COTTON MILLS            | Serampore    | Unviable              |
|               | 73   | RAMPOORIA COTTON MILLS               | Rishra       | Unviable              |
| Tamil Nadu    |      |                                      |              |                       |

|   74 | BALARAMAVARMA TEXTILE MILLS   | Shencottah   | Unviable   |
|------|-------------------------------|--------------|------------|
|   75 | KISHNAVENI TEXTILE MILLS      | Coimbatore   | Unviable   |
|   76 | OMPARASAKTHI MILLS            | Coimbatore   | Unviable   |
|   77 | SOMASUNDARAM MILLS            | Coimbatore   | Unviable   |
|   78 | KALEESWARAR MILLS 'A' UNIT    | Coimbatore   | Unviable   |

*****