Significant Number of Textile Mills Close Down in India
As many as 682 textile mills were closed as on June end this year and 232 of them were in Tamil Nadu. Textiles Minister Smriti Irani told the Lok Sabha 1,399 textile mills were operational as on June 30. All of them are in the non-small scale industry.
At the end of June, 682 textile mills were closed in the country, she said during the Question Hour. Of them, 232 mills were in Tamil Nadu while 85 were in Maharashtra and 60 in Uttar Pradesh. As many as 42 such mills are in Haryana. Among the 1,399 operational textile mills, 752 were in Tamil Nadu, followed by Maharashtra (135) and Andhra Pradesh (112).
As per the Office of the Textiles Commissioner, 610 cotton/man-made fibre textile mills (Non SSI) were closed having 3,00,697 numbers of workers on their payroll as on June 30, 2017
Under this government, the textiles industry saw the largest amount of Foreign Direct Investment (FDI), she said, adding that the GST (Goods and Services Tax) as well as the labour reforms have been welcomed by the industry. According to Minister, under the Amended Technology Upgradation Fund Scheme (ATUFS), launched last year, there are benefits in terms of one time capital subsidy of 15 per cent for the garmenting and technical textiles segments with a cap of Rs 30 crore which will help in reviving the scenario.
Also The Textiles Ministry has been implementing the Textiles Workers Rehabilitation Fund Scheme with effect from September 15, 1986. Under the scheme, interim relief is provided to textile workers rendered unemployed consequent to permanent closure of private non-ssi mills.
Besides, there is 10 per cent capital subsidy for segments like weaving, processing, jute, silk and handloom with a subsidy cap of Rs 20 crore for setting up new textile units or for expansion of existing units with benchmarked technology. Responding to a query related to closed textile mills in Maharashtra, the minister said the centre would fully support initiatives for the industry taken by the state government