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TN to modernize 5 cooperative spinning mills
May '12
The South India Textile Research Association has formulated a plan for modernizing five cooperative spinning mills in the southern Indian state of Tamil Nadu, at a cost of Rs. 1.04 billion, a policy note laid before the Legislative Assembly stated.

The project would be funded by the National Cooperative Development Corporation, it added.

State Minister for Handlooms and Textiles, Dr. S Sundararaj, announced that the government has resolved to spend Rs. 57.5 million for revamping and reopening the cooperative spinning mill at Ramanathapuram.

Another Rs. 58.2 million would be pumped in for revamping Tamil Nadu Cooperative Textile Processing Mills at Erode, which was shut down in February 2011 for non-compliance of the effluent treatment standards set by the Tamil Nadu Pollution Control Board.

However, the mill reopened in June 2011 after paying the penalty of Rs. 11.1 million imposed by the state government for the breach.

Modernization of the mill, would raise its fabric processing capacity from the existing 50,000 metres per day to 70,000 metres per day, the Minister said.

According to the policy note, there are 18 cooperative spinning mills in Tamil Nadu with joint capacity of over 470,000 spindles. These mills produce hank yarn for supply to handloom weavers' cooperative societies.

Currently, five cooperative spinning mills with a capacity of 97,280 spindles, churn out yarn for supply to weavers who prepare sarees, 'dhotis' and school uniforms, which are supplied free of cost under government programmes.

The Minister informed that a high-level committee led by the state's Chief Secretary has been constituted to decide if the 13 defunct spinning mills of the state should be revived or closed down.

In the event of closure of these mills, the committee will also decide whether their assets would be sold or transferred to other Departments, he added.

Fibre2fashion News Desk - India

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