Home / Knowledge / News / Textiles / TN spinners want debt restructuring & new bank loans
TN spinners want debt restructuring & new bank loans
02
May '12
Spinning mills in the southern Indian state of Tamil Nadu are seeking restructuring of debts and permission for availing new bank loans.

The Central and State governments should intervene and protect the spinning mills in Tamil Nadu that have been badly affected in the recent years due to power shortage and high taxes, the Madurai Spinners' Association said.

PS Sivaprasad, President of the association, said until a few years ago, Tamil Nadu was the leading state in the spinning sector. Even at present, Tamil Nadu accounts for about 45 percent of total installed 'spindlage' in the country.

The spinning mills in the state have been able to compensate high costs of transporting cotton from other states due to availability of skilled labour and technical know-how.

In recent years, however, the spinning mills in Tamil Nadu have lost their traditional advantage to mills in Maharashtra, Gujarat and Andhra Pradesh, which operate at efficiency rate of 98 percent.

In comparison, the efficiency of mills in Tamil Nadu has declined to 30 percent, mainly due to the power crisis. Some large mills have been able to boost their efficiency rate up to 50 percent through use of diesel-powered generators.

The problems faced by spinners are not restricted to power shortage and there are several other issues such as rise in cost of raw materials that are facing the sector, Mr. Sivaprasad said.

The spinning mills in the state pay nearly Rs. 23 per kg towards the Central Sales Tax (CST), freight charges and other costs, he added.

Moreover, the hike in cotton prices last year resulted in several spinning mills losing their working capital.

In view of such problems faced by Tamil Nadu spinning sector, the association urged the Central Government to allow restructuring of debts and sanctioning of new bank loans.

It further asked the state government to initiate steps to save the sector as thousands of workers will lose their jobs in the event of closing down of mills.

Fibre2fashion News Desk - India


Must ReadView All

Indian govt relaxes cabotage rule for cotton transport

Textiles | On 25th May 2018

Indian govt relaxes cabotage rule for cotton transport

The Government of India has relaxed cabotage rules for transportation ...

Courtesy: Teejay Lanka

Textiles | On 25th May 2018

Teejay Lanka doubles production capacity at Indian mill

Teejay Lanka, one of Sri Lanka’s largest textile manufacturers, has...

Courtesy: Messe Frankfurt/Yarn Expo Autumn edition

Textiles | On 25th May 2018

Yarn Expo Autumn 2018 scheduled earlier

Over 500 exhibitors are expected at the Yarn Expo Autumn 2018, being...

Interviews View All

Top executives
Textile & apparel bodies

Textile industry would like to see inclusion of cotton yarn under MEIS and ...

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Urmil Arya

Sushila International, a well established textile organisation established ...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search