Lok Sabha Question No. 4356 (UNSTARRED), answered on 2016-08-11
Subject: Sick Textile Mills
Ministry: TEXTILES
Asked by: RAHUL RAMESH SHEWALE, BHARTRUHARI MAHTAB, ASHOK SHANKARRAO CHAVAN, SANJAY SHAMRAO DHOTRE, KUNWAR HARIBANSH SINGH, GAJANAN CHANDRAKANT KIRTIKAR, SUNIL BALIRAM GAIKWAD

## SICK TEXTILE MILLS

4356. SHRI RAHUL SHEWALE: SHRI BHARTRUHARI MAHTAB: SHRI ASHOK SHANKARRAO CHAVAN: SHRI SANJAY DHOTRE: KUNWAR HARIBANSH SINGH: SHRI GAJANAN KIRTIKAR: DR. SUNIL BALIRAM GAIKWAD:

## Will the Minister of TEXTILES वस्त्र मंरी

be pleased to state:

- (a) the number of textile mills becoming sick and closed in the country during the last three years and the current year, State-wise;
- (b) the reasons for closure of these textile mills;
- (c) whether the Government has formulated any scheme/programme to revive such sick/closed textile mills in the country, and if so, the details thereof and if not, the reasons therefor;
- (d) the number of beneficiaries of the Textile Worker's Rehabilitation Fund Scheme (TWRFS) along with the salary/wages disbursed to them in the country during the last three years and the current year, State-wise; and
- (e) whether the Government has received complaints of denial of  salary/  wages to eligible persons and disbursal of wages to ineligible persons under the said scheme in the country during the said period, and if so, the details thereof, State-wise and the action taken/being taken by the Government on such complaints?

## उत्तर

## ( )

## ANSWER वस्त्र मंरी श्री अज

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

- (a): The details of State wise cotton/man-made fibre textile mills (Non-SSI) closed during last three years and current year are at Annexure-I.   As regards, National Textile Corporation Limited, no textile mill has been closed during last three years and current year.
- (b): The main reasons for closure of these textile mills are financial problems such as inadequate working capital, insufficient cash flow, increase in cost of production, squeezed profit margin, stressed assets etc.
- (c): The  Government  has  no  such  scheme/programme  to  revive  these  mills.    However,  the  Board  for Industrial & Financial Reconstruction (BIFR) set up  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.   The status of the cases registered with BIFR is being decided by BIFR on the basis of its finding and decide the reliefs / concessions etc. to be given to units / companies on the revival packages.
- (d): Under  the  Textile  Workers  Rehabilitation  Fund  Scheme  (TWRFS),  relief  is  being  disbursed  to  the eligible  workers of eligible closed textile mills under the said Scheme.  The details of relief disbursed to the eligible workers of eligible closed textile mills under the said scheme during the last three years and the current year, State-wise, is attached at Annexure-II.
- (e): Relief is paid to the eligible workers  of  eligible closed  textile mills  under Textile  Workers Rehabilitation Fund Scheme.  Ministry of Textiles has no such information.

## Annexure-I

State wise Cotton/ man- made fibre textile mills (Non-SSI) closed

(in Nos)

| Sr. No   | State/U.T.       |   2013-14 |   2014-15 |   2015-16 | 2016-17 (as on 31-5-2016)   |   Total |
|----------|------------------|-----------|-----------|-----------|-----------------------------|---------|
| 1        | Andhra Pradesh   |         3 |         2 |         3 | 0                           |       8 |
| 2        | Telangana        |         0 |         1 |         1 | 0                           |       2 |
| 3        | Haryana          |         1 |         1 |         0 | 1                           |       3 |
| 4        | Himachal Pradesh |         0 |         0 |         1 | 0                           |       1 |
| 5        | Karnataka        |         1 |         0 |         3 | 0                           |       4 |
| 6        | Maharashtra      |         0 |         0 |         1 | 0                           |       1 |
| 7        | Punjab           |         0 |         1 |         0 | 0                           |       1 |
| 8        | Rajasthan        |         0 |         0 |         2 | 0                           |       2 |
| 9        | Tamil Nadu       |        15 |        11 |         4 | 2                           |      32 |
| 10       | Uttar Pradesh    |         0 |         0 |         2 | 0                           |       2 |
| 11       | Uttaranchal      |         2 |         0 |         0 |                             |       2 |
| 12       | West Bengal      |         2 |         0 |         0 | 0                           |       2 |
| T o t    | a l              |        24 |        16 |        17 | 3                           |      60 |

Total  593 Cotton/  man-  made  fibre  textile  mills  (Non-SSI)  were  closed  till 31-5-2016

## Annexure-II

| DETAILS OF DISBURSEMENT UNDER TWRFS FOR THE LAST THREE YEARS   | DETAILS OF DISBURSEMENT UNDER TWRFS FOR THE LAST THREE YEARS   | DETAILS OF DISBURSEMENT UNDER TWRFS FOR THE LAST THREE YEARS   | DETAILS OF DISBURSEMENT UNDER TWRFS FOR THE LAST THREE YEARS   | DETAILS OF DISBURSEMENT UNDER TWRFS FOR THE LAST THREE YEARS   | DETAILS OF DISBURSEMENT UNDER TWRFS FOR THE LAST THREE YEARS   | DETAILS OF DISBURSEMENT UNDER TWRFS FOR THE LAST THREE YEARS   | DETAILS OF DISBURSEMENT UNDER TWRFS FOR THE LAST THREE YEARS   |
|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------|
| Sr. No.                                                        | State                                                          | 2013-14                                                        | 2013-14                                                        | 2014-15                                                        | 2014-15                                                        | 2015-2016                                                      | 2015-2016                                                      |
|                                                                |                                                                | Amount allocated & Utilized (Rs.in lakh)                       | No. of workers benefited                                       | Amount allocated & Utilized (Rs.in lakh)                       | No. of workers benefited                                       | Amount allocated & Utilized (Rs.in lakh)                       | No. of workers benefited                                       |
| 1                                                              | Gujarat                                                        | 0.93                                                           | 2                                                              | 4.41                                                           | 12                                                             | 2.51                                                           | 5                                                              |
| 2                                                              | Maharashtra                                                    | 12.66                                                          | 31                                                             | 32.31                                                          | 89                                                             | 1.95                                                           | 4                                                              |
| 3                                                              | Madhya Pradesh                                                 | --                                                             | --                                                             | --                                                             | --                                                             | 0.49                                                           | 1                                                              |
| 4                                                              | Karnataka                                                      | --                                                             | --                                                             | 6.88                                                           | 39                                                             | 2.88                                                           | 7                                                              |
| 5                                                              | Andhra Pradesh                                                 | 109.45                                                         | 273                                                            | 56.56                                                          | 356                                                            | 7.55                                                           | 55                                                             |
| 6                                                              | Tamil Nadu                                                     | 328.68                                                         | 854                                                            | 105.92                                                         | 271                                                            | --                                                             | --                                                             |
| 7                                                              | Punjab                                                         | 49.1                                                           | 134                                                            | 56.28                                                          | 151                                                            | 6.26                                                           | 17                                                             |
| 8                                                              | Telangana                                                      | --                                                             | --                                                             | 15.62                                                          | 56                                                             | 36.87                                                          | 91                                                             |
| 9                                                              | Uttar Pradesh                                                  | --                                                             | --                                                             | --                                                             | --                                                             | 119.43                                                         | 558                                                            |
|                                                                | Total                                                          | 500.82                                                         | 1294                                                           | 277.98                                                         | 974                                                            | 177.94                                                         | 738                                                            |

For the year 2016-17, the Ministry of  Textiles has issued authorization of Rs. 5.00 Crore for disbursement of relief under TWRFS and disbursement is under process.

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