Rajya Sabha MP Sanjeev Arora has raised the plight of the spinning industry of Ludhiana in the ongoing Monsoon Session of Parliament. One of the biggest employment generators with over 1.5 lakh employees working at 60 units and an annual turnover of over Rs 28,000 cr, the industry is in dire straits due to what industrialists allege “faulty” government policies.
The concerns of the industry were highlighted in these columns on August 2. Speaking in the Rajya Sabha, Arora asked the union textiles minister about steps being taken by the government to pull the textile industry out of doldrums, whether the government was ensuring that all pending dues were cleared, steps being taken to impose anti-dumping duty on all types of yarns and made-ups being imported to save domestic textile industry and whether the government was planning to incentivise textile exports, especially value-added products.
Replying to his question, the Minister said to promote and develop the textile sector in the country, the government was implementing various schemes, which include Pradhan Mantri Mega Integrated Textile Region Apparel (PM MITRA) Parks, Production Linked Incentive (MMF Apparel, MMF Fabrics and Products of Technical Textiles) Scheme, SAMARTH — Scheme for Capacity Building in Textile Sector, Scheme for Integrated Textile Parks, Integrated Processing Development Scheme, Silk Samagra 2.0, Jute (ICARE- Improved Cultivation and Advanced Retting Exercise), Amended Technology Upgradation Fund Scheme, Raw Material Supply Scheme, National Handloom Development Programme, National Handicraft Development Programme, Comprehensive Handicraft Cluster Development Scheme, Integrated Wool Development Programme and National Technical Textiles Mission.
She said the amended Technology Upgradation Fund Scheme (ATUFS) was launched in January 2016 and was valid till March 31, 2022. “Applications for capital investment subsidy registered on the online portal are processed in terms of provisions of scheme guidelines of the scheme,” she said.
The minister replied that the anti-dumping duty was levied by the Union Government upon examination of the investigation report by the Directorate General of Trade Remedies evidencing the existence of dumping and consequent injury to domestic producers and keeping in mind general public interest.
“The government introduced the Scheme of Rebate of State and Central Taxes and Levies effective from March 2019 till March 31, 2024, for promoting exports of apparel/ garments and made-ups and to make the textile sector competitive in the international market,” Jardosh said. Besides, schemes under implementation such as PM MITRA parks and Production Linked Incentive (MMF Apparel, MMF Fabrics and Products of Technical Textiles) were expected to increase scale and size, making the sector competitive in the global market, she added.
“I am not satisfied with the response of the Textiles Minister as she did not give any specific reply or assurance to resolve core issues raised by me,” said Sanjeev Arora, Rajya Sabha MP.
Industry in a shambles
With a total installed spindle age of 42 lakh spindles producing yarn worth over Rs 28,000 crore every year, the spinning industry, having 10 large scale units and rest 50 MSMEs, in the industrial and business hub of the North India, employs over 1.5 lakh persons directly and almost 3 lakh indirectly.
Even as the spinning industry plays the key role in the financial and economic growth of the city and the entire region as well, the trade was passing through a major crisis owing primarily to duty and tax anomalies, the leading industrialists have said.
Mainly producing cotton yarn, polyester spun yarn and poly/ cotton yarn, Ludhiana’s spinning industry exports goods worth almost Rs 7,000 crore every year to various countries while its domestic business spans almost Rs 21,000 crore per annum.
