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

Pic: Shutterstock

Textiles | On 8th Mar 2021

Vietnam-UK FTA triggers two-way trade

After a month of Vietnam signing a free trade agreement (FTA) with...

Pic: Shutterstock

Retail | On 8th Mar 2021

2021 may see record retail sales in US, economy hinges on virus: NRF

A wide array of economic indicators point toward potentially record...

Pic: Lund University

Textiles | On 8th Mar 2021

Swedish scientists convert cotton into sugar, to make textiles

In a major step towards recycling, scientists at Sweden’s Lund...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchains will be in heavy use by early adopters by 2025

Textile Industry, Head honchos

Textile Industry
Head honchos

Value of 'Made in India' should get more importance

Textile Industry, Head honchos

Textile Industry
Head honchos

Estimate loss of $8-$10 billion in turnover

Siddhant Sinha,

Siddhant Sinha

Set up by Pradeep Sinha, a graduate engineer from Manipal Institute of...

Ritu Oberoi,

Ritu Oberoi

Mumbai-based Forsarees is a socially driven business enterprise, working...

Zillur Rehman,

Zillur Rehman

Cornerstone Systems offers consultancy to businesses for enhancing their...

Robert Brookins, Alexium International

Robert Brookins
Alexium International

Alexium International is a specialty chemical development company...

Karan Bose, Hula Global

Karan Bose
Hula Global

Hula Global, a leading isolation gown manufacturer in India, has been...

Tiasha Renganathan, Twinery Innovations by MAS

Tiasha Renganathan
Twinery Innovations by MAS

Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Suman Nathwani, Suman Nathwani

Suman Nathwani
Suman Nathwani

<span style="font-size: 12px;">Designer <b>Suman Nathwani</b> talks about...

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


March 2021

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


Advanced Search