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Lignite tariff rise affects Surat textile processors

27
Jan '12
Even as the anger over the rise in price of natural gas has not yet completely subsided, textile processors in Surat have received another blow with a 56 percent rise in the transportation cost of lignite.

Around 400 textile processing units in Surat city and adjoining areas procure lignite, needed for producing finished fabrics, from Tadkeshwar mines, situated 50 km away from the city.

According to South Gujarat Textile Processors Association (SGTPA), nearly 7,000 tons of lignite per day is used by textile processing units in Surat for dyeing and printing of grey fabrics.

The increase in transportation cost of lignite will result in a similar increase in the cost of production and hence, the prices of finished fabrics, sarees and dress materials are bound to go up.

Mr. Subhash Patodia, Chairman, SGTPA's Lignite Committee told fibre2fashion, “The Gujarat Mineral Development Corporation (GMDC) has not increased the rates of lignite, but the transporters have formed a cartel and increased the transportation costs from the existing Rs. 450 per ton to Rs. 700 per ton.”

Briefing about the use of lignite in textile industry, he says, “Lignite has vast applications in the textile industry. Gas and electricity are used as fuel, whereas lignite is used to generate steam.”

Explaining the effect of tariff rise on Surat textile industry, he reveals, “The textile industry in Surat is facing tough times since the past few days – be it due to gas, power supply, dyes and chemicals, labour problems or even production. So, it is becoming difficult for the textile industry to survive, and if the costs increase by even a rupee now, then the industry will face a severe blow.”

“On the other hand, if the job charges do not increase now, then also it will become difficult for the industry to survive,” he adds.

Apprising about possibility of amicable settlement of price rise issue, he says, “We will approach the Ministry of Industry and the Ministry of Mines and request them to intervene in the matter and bring an agreeable solution to the issue of rise in tariff for lignite transportation.”

Fibre2fashion News Desk - India


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