Govt hits on novel idea to link jute sacking orders with modernisation

10 Jun '05

2 min read

To impress upon jute mill owners to invest capital and upgrade their plants, the Union Textiles Ministry is likely to link sacking orders accordingly.

No orders will be given to those jute mills who do not invest money or plan for modernisation of their plants.

The textile ministry was keen on introducing the capital expenditure-linked sacking order in the current kharif procurement season.

Government is a major buyer of jute sacks that are environmentally friendly and are extensively used in the packing of wheat, rice, pulses etc.

The modernisation-linked procurement of jute sacks would now be implemented from the next rabi crop, sources say.

Over 80 percent of the jute sack production comes from jute mills and the government agencies are its major customers.

Moves are afoot to create a public-private partnership initiative to develop a centre for jute machinery development in Kolkatta to ensure availability of various engineering components for upgrading the mills.

The Union heavy industry ministry held a meeting with representatives of financial institutions and banks in Mumbai on Friday. It was decided that the public and private sector textile and jute processing machinery manufacturers would work in tandem to meet the emerging needs of jute mills undergoing modernisation. The banks and financial institutions assured funds for a centre for jute machinery development.

According to a research conducted by the Indian Jute Research Association reported that mot of the jute mills did not spend money even as they enjoyed depreciation benefits on the plant and machinery that were absolete and almost century old.

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