Spinning Mills are Facing Problems in Andhra Pradesh

Spinning Mills are Facing Problems in Andhra Pradesh

The Minister of State of Textiles, Ajay Tamta, in a written reply in the Rajya Sabha today said that at present, there are 132 cotton and man-made fibre textile mills (Non- SSI) of which only 22 cotton and man-made fibre textile mills (Non-SSI) are closed in the last 30 years due to financial problems and market condition.

In order to achieve growth, modernization, value addition, an increase in exports and for the overall development of the textile sector in the country, the Government has been implementing various policy initiatives and schemes like:

  1. Special Package for Textile and Apparel sector: Rs 6000 crores package was launched in June 2016 to boost employment and export potential in the apparel and made up segments. This package consists of Remission of State Levies for garments and made-ups; additional production and employment linked subsidy of 10% under ATUFS for garments, assistance for the entire 12% employers’ contribution towards EPF, fixed-term employment in garments, increasing overtime caps, and income tax concessions under section 80JJAA for the garment sector.
  2. Enhancement of rates under Merchandise Exports from India Scheme (MEIS): To further boost exports of apparel & made-up sectors, interest rates under Merchandise Exports from India Scheme (MEIS) has been enhanced from 2% to 4% in Nov 2017.
  3. Power Tex India:  A comprehensive scheme for the powerloom sector was launched in April 2017 with an outlay of Rs. 487 crores for three years.  This scheme has components relating to loom upgradation; infrastructure creation and concessional access to credit. The scheme has been designed to attract investment of Rs. 1000 crores and employment to 10000 persons in the powerloom sector and will also result in higher returns to power-loom units.
  4. Amended Technology Up-gradation Fund Scheme (ATUFS): The amended Scheme was launched in January 2016 with an outlay of Rs 17822 Crores. The scheme has been designed to mobilize new investment of about Rs 95 000 crores and employment for 35 lakh persons by the year 2022.
  5. SAMARTH- Scheme for Capacity Building in Textile Sector (SCBTS): A new scheme with an outlay of Rs 1300 crores has been approved recently in December 2017 for providing employment oriented training to 10 lakh people in various segments in textiles including one lakh in traditional sectors, by March 2020.
  6. National Handloom Development Programme (NHDP) and National Handicrafts Development Programme (NHDP): These programmes aim at holistic development of handloom and handicrafts clusters through an integrated approach. The strategic interventions under the programme include financial assistance for new upgraded looms and toolkits, design development, training, easy access to working capital through customized Mudra loan for weavers and artisans and direct marketing support to the weavers and artisans through expos, fair, buyer-seller meet and e-commerce.

The details of the amount still pending to be given to Andhra Pradesh under TUFS and by when dues would be cleared is given below:

(Rs. in Crore)

State Scheme No Of UIDs Total Committed Amount Released Amount Pending committed Amount By when dues would be cleared
ANDHRA PRADESH RTUFS 29 170.57 113.11 16.8 Based on Quarter-wise Committed liability applied by the unit/bank and the report of  NABCONS
RRTUFS 47 101.41 62.13 35.23 Based on Quarter-wise Committed liability applied by unit/bank and completion of  scheme i.e. 31.03.2022
ATUFS 10 13.26 0 13.26 Out of 10 units, only 7 units have applied for JIT request and remaining 3 units are yet to apply JIT request. The release of subsidy will be after the recommendation of JIT based on JIT Verification.
  Total 86 285.24 175.24 65.29  

 GST Council comprises of Central and State Governments and it has decided that restoring 3.35 per cent duty drawback would not be possible at the moment.

The Government has not received any representation of the problems faced by the spinning (yarn) mills in the State of Andhra Pradesh.

– Apparel and Textile News, Apparel Talk, Indian Apparel