Question : REVIVAL OF TEXTILE MILLS



(a) the names of textile mills declared sick/closed during each of the last three years, till date, and the number of workers affected as a result thereof, mill-wise/State-wise;

(b) the reasons for closure of such mills;

(c) the dues outstanding against the mills by way of salary etc. of the workers of these mills;

(d) whether the Government have any scheme to revive the closed mills by selling its surplus land;

(e) if so, the details thereof, State-wise;

(f) whether the Government are contemplating to increase investment and ensure availability of loan for modernisation of textile mills; and

(g) if so, the details thereof?

Answer given by the minister


MINISTER OF TEXTILES (SHRI KASHIRAM RANA )


(a) to (g) A Statement is laid on the Table of the House.

Statement referred to in reply to Lok Sabha Starred Question. No. 169 for 2.8.2001

(a) There were 33 cotton/man-made fibre textile mills (Non-SSI , State-wise) which were reported closed during the last three years (from 1.6.1998 to 31.5.2001) and registered with BIFR. Details are as follows:-


(i) From 1.6.1998 to 31.5.1999, a total of 13 mills were closed as follows:

State	Name & Address of the mill	No. Of Workers affected
Andhra Pradesh	Madanpalle Spg. Mills Pvt Chittoor.	993	Pengune Textile, Hydrabad	154	Shri Maruthi Textiles Ltd , Chittoor	432
Haryana	GTN Synthitics Ltd; Sirsa,	801
Karnataka Devangere Cotton Mills. Gadag, 543 Kerala Trivandrum Spinning Mills Ltd. Balaramapuram, 280 Maharasthra Matulya Mills Ltd Lower Parel, Mumbai 643 Tamilnadu Shree Janardana Mills Ltd.Singanallur, Coimbatore. 400 Vasantha Mills Ltd Singanallur, Coimbatore. 1327 Madhu Spg. & Wvg. Mill, Coimbatore 237 Uttar Pradesh U P State Yarn Co Ltd Meeja, Allahabad, 1350 West Bengal Anantpur Textiles Ltd Hawrah 1005 Rajasthan Sagar Spg. & Wvg. Udaipur 275


(ii) From 1.6.1999 to 31.5.2000, a total of 14 mills were closed as follows:

State Name & Address of the mill No. Of Workers affected
Andhra Pradesh Shree Mfg.Co. Ltd, Madek 649 Gujarat Madhu Textiles A`bad Ltd Mehsana, 925 Maheshwari Mills Ltd Shahibaug Rd, Ahmedabad 853 The Raipur Mfg. Co. Ltd. Saraspur Gate, Ahmedabad. 2311 Haryana B R D Textiles Ltd. Rewari,. 64 Maharashtra Kamala Mills Ltd Lower Parel, Mumbai. 43 Marathe Textile Mills Miraj, Sangli, 734 Swan Mills Ltd Sewaree, Mumbai. 933 Rajasthan The Krishna Mills Ltd Ajmer, 431 Tamilnadu Karur Mills Ltd Chinnamalai,. 641 Ayyappan Textiles Ltd Ramnathpuram 323 Sri Nadiambal Textiles Mills Pudukkottai 350 Neo Intex Mills Ltd Dindigul 113 Muruganathan Mills Ltd Dharmapuri 79




(iii) From 1.6.2000 to 31.5.2001, a total of 6 mills were closed as follows:
State Name & Address of the mill No. Of Workers affected
Andhra Pradesh Cuddapah Spg. Mills, Cuddapah 728 Bihar Dumaraon Textiles Ltd.Buxar 1029 Gujarat P.G. Textiles Mills Ltd.(Anand Cotspin Ltd.) Baroda 260 Haryana Gee Kay Textiles Ltd, Hissar. 51 Orissa Orissa Textile Mills Ltd Cuttack 3186 Tamil Nadu Veeraghava Textiles, Chengalput 319



(b) The mills are closed for a variety of reasons. The main reasons for closure are - sickness, technological obsolescence, lack of modernisation, financial crisis and labour problems.

(c) to (e) The Government of India has enacted the Sick Industrial Companies (Special Provisions) Act, 1985 and established the Board for Industrial and Financial Reconstruction (BIFR) for timely detection of sick & potentially sick companies and for the speedy determination of preventive ameliorative and remedial measures which need to be taken in respect of such companies . The rehabilitation scheme sanctioned by BIFR also includes the outstanding dues of salary etc. of workers and mobilization of resources through selling of land by the promoters. However, dues outstanding by way of salary are not maintained by BIFR.

(f) & (g) Government of India have launched the Technology Upgradation Fund Scheme (TUFS) w.e.f., 1.4.99, for modernisation of textile and jute industry, for a period of 5 years. The scheme provides the reimbursement of 5% interest on the loan sanctioned by the financial institutions and their co-opted agencies to the eligible units. The scheme is being operated by the Nodal Agencies, viz., IDBI, SIDBI & IFCI. As on 31st May, 2001, 953 applications were sanctioned loan of Rs.4439 crore; and Rs.2673 crores were disbursed.