Lok Sabha Question No. 722 (UNSTARRED), answered on 2015-12-03
Subject: Closure of Textile Mills
Ministry: TEXTILES
Asked by: BHAGWANTH KHUBA, ARJUNLAL MEENA, VIRENDRA  KUMAR

## CLOSURE OF TEXTILE MILLS

## 722. SHRI BHAGWANTH KHUBA: SHRI ARJUN LAL MEENA: DR. VIRENDRA KUMAR:

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

(a) the  details  of  textile  mills  operating  and  closed  at  present  in  the  country  including Karnataka and Rajasthan;

(b) whether the textile mills have been closed due to absence of proper guidelines;

(c) if  so,  whether  the  Union  Government proposes to start these mills and safeguard the interests of the workers rendered unemployed due to closure of these mills; and

(d) if so, the details thereof?

## 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) & (b): As per available information, there are 1399 Cotton/ Man-Made Fibre Textile Mills (Non SSI) operating and 578 closed Mills in the country. A statement indicating statewise  position  of  operational  textile  mills  is  at  Annexure-I.  The  statement  indicating  closed textile mills alongwith reasons for closure is at Annexure-II.

(c) & (d): Closure  of  companies  including  textile  mills  are  guided  by  Sick  Industrial Companies  (Special  Provisions)  Act  under  which  the  Board  for  Industrial  &  Financial Reconstruction  (BIFR) has  been  set  up  with  a  view  to  arrange  timely  detection  of  sick  and potentially  sick  companies  and  for  the  speedy  determination  of  preventive,  ameliorative  and remedial measures in respect of such companies including closed textile mills.

For rehabilitation of Textile workers rendered un-employed due to permanent closure of  a  textile  mills  in  the  private  non-SSI  Sector,  the  Textile  Workers  Rehabilitation  Fund Scheme (TWRFS) has been introduced with effect from 15-9-1986. Relief under the scheme is provided for three  years @ 75% wages in the first year, 50% wages in the second year and 25% wages in the third year. So far, 1,17,316 workers have benefitted under the scheme and an amount of Rs. 317.12 crores has been distributed upto 31 st October 2015.

Details of State wise Cotton/ Man-Made Fibre Textile Mills (Non SSI) in Operation as on 30.09.2015:

| Sr. no.   | State              |   No of Mills |
|-----------|--------------------|---------------|
| 1.        | Andhra Pradesh     |           145 |
| 2.        | Dadra Nagar Haveli |            11 |
| 3.        | Goa                |             1 |
| 4.        | Gujarat            |            47 |
| 5.        | Haryana            |            31 |
| 6.        | Himachal Pradesh   |            14 |
| 7.        | Jammu &Kashmir     |             1 |
| 8.        | Jharkhand          |             1 |
| 9.        | Karnataka          |            20 |
| 10.       | Kerala             |            17 |
| 11.       | Madhya Pradesh     |            40 |
| 12.       | Maharashtra        |           132 |
| 13.       | Orissa             |             3 |
| 14.       | Pondicherry        |             8 |
| 15.       | Punjab             |            95 |
| 16.       | Rajasthan          |            42 |
| 17.       | Tamil Nadu         |           757 |
| 18.       | Uttar Pradesh      |            15 |
| 19.       | Uttaranchal        |             5 |
| 20.       | West Bengal        |            14 |
|           | T o t a l          |          1399 |

## Details  of  State  wise Closed  Cotton/  Man-Made  Fibre  Textile  Mills  (Non  SSI)  as  on 30.09.2015:

| Sr. no.   | State            |   No of Mills |
|-----------|------------------|---------------|
| 1.        | Andhra Pradesh   |            22 |
| 2.        | Assam            |             7 |
| 3.        | Bihar            |             4 |
| 4.        | Chhattisgarh     |             1 |
| 5.        | Daman &Diu       |             1 |
| 6.        | Gujarat          |            42 |
| 7.        | Haryana          |            40 |
| 8.        | Himachal Pradesh |             2 |
| 9.        | Jammu &Kashmir   |             1 |
| 10.       | Karnataka        |            20 |
| 11.       | Kerala           |            17 |
| 12.       | Madhya Pradesh   |            19 |
| 13.       | Maharashtra      |            64 |
| 14.       | Manipur          |             1 |
| 15.       | Orissa           |            13 |
| 16.       | Pondicherry      |             2 |
| 17.       | Punjab           |            18 |
| 18.       | Rajasthan        |            20 |
| 19.       | Tamil Nadu       |           212 |
| 20.       | Uttar Pradesh    |            52 |
| 21.       | Uttaranchal      |             4 |
| 22.       | West Bengal      |            16 |
|           | T o t a l        |           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%                      |
|           | Total                   |           578 | 100%                       |

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