Lok Sabha Question No. 837 (UNSTARRED), answered on 2016-07-21
Subject: Closure of Textile Mills
Ministry: TEXTILES
Asked by: RAJU ALIAS DEVAPPA ANNA SHETTI, RAVINDRA VISHWANATH GAIKWAD

## CLOSURE OF TEXTILE MILLS

## 837. SHRI RAJU SHETTY:

PROF. RAVINDRA VISHWANATH GAIKWAD:

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

- (a) the number of textile/spinning mills including cotton/man made fiber/ powerloom which were closed/declared sick during the last one year along with the reasons therefor, State/UT-wise;
- (b) whether there is any proposal to revive the said closed mills and if so, the details thereof along with the number of closed mills including financial technological assistance, if any, provided by the Government to the closed mills and if not, the reasons therefor;
- (c) the  steps  taken  by  the  Government  for  the  rehabilitation/employment/pension  to the employees/workers rendered unemployed due to closure of textile/ spinning mills in the country along with the funds allocated for the purpose during the said period, Statewise;
- (d) whether the Government proposes to establish textile/spinning mills cluster in the country and if so, the details thereof; and

(e) the number of textile/spinning mills operating in the country at present, State/ UTwise?

## उत्तर

## ANSWER वस्त्र मंरी ( श्री अज )

## MINISTER OF STATE FOR TEXTILES (SHRI AJAY TAMTA)

(a): During  the  last  one  year  (i.e.,  from  June  2015  to  May  2016),  17  cotton  /  manmade  fibre  textile  mills  (Non-SSI)  were  closed  in  the  country.  The  details  are  at Annexure-I. The  major  reported  reasons  for  closure  include  financial  problems  due  to inadequate  working  capital,  insufficient  cash  flow,  increase  in  cost  of  production, squeezed profit margin, stressed assets, etc.

(b): Ministry  has no scheme for providing finance and technical support for revival of closed  mills.  However,  the  Board  for  Industrial  &  Financial  Reconstruction  (BIFR)  has been set up by the Government under Sick Industrial Companies (Special Provisions) Act, with  a  view  to  arranging  the  timely  detection  of  sick  and  potentially  sick  companies (including textile mills) and for the speedy determination of preventive, ameliorative and remedial measures which need to be taken in respect of such companies including closed mills.

(c): In order to give relief to the workers rendered jobless due to permanent closure of Non-SSI  Textile  Mills  in  private  sector,  the Textile  Worker's  Rehabilitation  Fund Scheme (TWRFS) was introduced by Government of India with effect from 15.9.1986. The objective of TWRFS is to give interim relief to the workers rendered jobless for a period of three years on a tapering basis, that is, wage equivalent to75% 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.  The details of state-wise funds released under the scheme are enclosed at Annexure- II.

(d): Central Government generally does not set up / establish new textile units in the country. The role of the Central Government is to ensure a conducive policy environment and to create enabling conditions for the industry and private entrepreneurs to set up units. Government is implementing several Schemes such as the Scheme for Integrated Textile Parks (SITP), Integrated Processing Development Scheme (IPDS) for Textiles, Technology  Upgradation  Fund  Scheme  (TUFS)  and  North  Eastern  Region  Textile Promotion  Scheme  (NERTPS),  to  support  the  setting  up  of  textile  units  in  the  private sector.

(e): At  present,  there  are  1420  cotton/  man-  made  fibre  textile  mills  (Non-SSI), including mills of National Textile Corporation, operating in the country. The state wise details are given in Annexure- III.

## Annexure-I

Annexure- II Payment of relief under Textile Workers Rehabilitation Fund Scheme

| State Wise Number Of Cotton Man-Made Fibre Textile Mills (Non-SSSI) Closed Mills during last one year (June-15 To May-16)   | State Wise Number Of Cotton Man-Made Fibre Textile Mills (Non-SSSI) Closed Mills during last one year (June-15 To May-16)   | State Wise Number Of Cotton Man-Made Fibre Textile Mills (Non-SSSI) Closed Mills during last one year (June-15 To May-16)   |
|-----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|
| Sr. No                                                                                                                      | State/U.T.                                                                                                                  | No. of Units                                                                                                                |
| 1                                                                                                                           | Andhra Pradesh                                                                                                              | 3                                                                                                                           |
| 2                                                                                                                           | Telangana                                                                                                                   | 1                                                                                                                           |
| 3                                                                                                                           | Haryana                                                                                                                     | 1                                                                                                                           |
| 4                                                                                                                           | Karnataka                                                                                                                   | 3                                                                                                                           |
| 5                                                                                                                           | Maharashtra                                                                                                                 | 1                                                                                                                           |
| 6                                                                                                                           | Rajasthan                                                                                                                   | 1                                                                                                                           |
| 7                                                                                                                           | Tamil Nadu                                                                                                                  | 6                                                                                                                           |
| 8                                                                                                                           | Uttar Pradesh                                                                                                               | 1                                                                                                                           |
| Total                                                                                                                       | Total                                                                                                                       | 17                                                                                                                          |

## since inception up to a 30 th June 2016.

| State          |   No. of Mills paid relief upto June 2016 |   No. of workers paid upto June 2016 under TWRFS |   Amount disbursed upto June 2016 (Rs. in Lakhs) |
|----------------|-------------------------------------------|--------------------------------------------------|--------------------------------------------------|
| Gujarat        |                                        43 |                                            63718 |                                         15995.1  |
| Maharashtra    |                                         6 |                                             8086 |                                          2395.07 |
| Madhya Pradesh |                                         5 |                                            19034 |                                          5308.38 |
| Tamil Nadu     |                                         7 |                                             5886 |                                          1179.18 |
| Kerala         |                                         1 |                                              437 |                                           247    |
| Karnataka      |                                        11 |                                             6172 |                                          2241.29 |
| Andhra Pradesh |                                        11 |                                             3305 |                                          1329    |
| Telangana      |                                         1 |                                              147 |                                            52.48 |
| Delhi          |                                         1 |                                             5170 |                                          1193    |
| West Bengal    |                                         3 |                                             2042 |                                           533.49 |
| Punjab         |                                         5 |                                             3141 |                                          1204.25 |
| Uttar Pradesh  |                                         1 |                                              558 |                                           119.43 |
| TOTAL          |                                        95 |                                           117696 |                                         31797.7  |

## State  wise  Number  of  Cotton  /  Man-Made  Fibre  Textile  Mills  (Non-SSI) including NTC mills functioning as on 31.05.2016 in the country

| Sr. No.   | State/ UT          |   No. of Mills |
|-----------|--------------------|----------------|
| 1         | Andhra Pradesh     |            113 |
| 2         | Goa                |              1 |
| 3         | Gujarat            |             48 |
| 4         | Haryana            |             30 |
| 5         | Himachal Pradesh   |             14 |
| 6         | Jammu &Kashmir     |              1 |
| 7         | Jharkhand          |              1 |
| 8         | Karnataka          |             19 |
| 9         | Kerala             |             21 |
| 10        | Madhya Pradesh     |             42 |
| 11        | Maharashtra        |            144 |
| 12        | Orissa             |              3 |
| 13        | Punjab             |             95 |
| 14        | Rajasthan          |             41 |
| 15        | Tamil Nadu         |            762 |
| 16        | Telangana          |             30 |
| 17        | Uttar Pradesh      |             15 |
| 18        | Uttaranchal        |              5 |
| 19        | West Bengal        |             15 |
| 20        | Dadra Nagar Haveli |             11 |
| 21        | Pondicherry        |              9 |
|           | T o t a l          |           1420 |

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