XI LOK SABHA DEBATES,   Session IV (Budget) 

Thursday, May 15, 1997 / Vaisakha 25, 1919 (Saka)



Type of Debate: SHORT DURATION DISCUSSION (RULE-193)

Title: Problems of Textiles Industry. (Contd.- Concluded)		

TEXT :
 14.26 hrs


MR.  CHAIRMAN :  Now, the House will take up further discussion regarding
problems of Textiles Industry.  Shri Madhukar Sarpotdar will continue his
speech.

SHRI MADHUKAR SARPOTDAR (MUMBAI NORTH-WEST): Mr. Chairman, Sir, yesterday I
quoted a news item which appeared in the newspaper regarding the closing down
of 120 textile mills. Today, to my utter surprise, I have seen the news item
again in the newspaper which says: `70 


Eò{Éc÷É Ê¨É±ÉäÆ ¤ÉÆnù Eò®úxÉä EòÉ ¡òèºÉ±ÉÉ'. 

So, out
of 120, they have already decided to close down 70 textile mills and render
about 50,000 workmen jobless. This being the situation, now we will have to
think over the entire policy of the Government as to what the Government is
going to do with these labourers.

	Sir, if you look at the industry, you will find that the industry was
not incurring any loss. On the contrary, according to reports, this industry
was making huge profit. I do not know what had happened all of a sudden that
the industry had become sick. Then, most of the employers closed down the
mills and referred the matter to the B.I.F.R. They started further proceedings
because they were fully aware that the workmen were not in a position to run
the mills on cooperative society basis. That is why, alternatively, they
sought a solution by saying that the land of the mills should be sold away and
the money accrued from it should be utilised for housing purpose and some
other purposes.

	Yesterday also, you said that the unions are in favour and that they
are allowing the industry to sell the land. But are these unions going to give
a guarantee that whatever money is collected by the employer or the Government
would be utilised for the betterment of the workmen? That is the question. The
workmen are not sure about the approach of the employers. Going by the
experience of the past 50 years and more, the workmen are not prepared to
listen to them. So, the question of selling the land of the mills in
Maharashtra does not arise unless somebody comes forward and assesses the
proposal.

	If the land is sold, where will that money go? The Central Government
or the State Government should take some guarantee from the employers that the
money accrued from the sale of the land would be utilised for the betterment
of the workmen. The rightful dues of the retired employees and the employees
who have resigned and others should first be cleared. They should also give a
guarantee that those employees who want to work in the same industry would be
provided with job and they would be looked after well by the same employers.
The necessary development of the industry, automation, standard of work,
quality of cloth etc., should also be looked into. Thereafter, they would
continue to work there for years to come so that the workmen would not face
similar problems again and again. If somebody is prepared to give that kind of
guarantee, naturally workmen will not come in the way of even selling the
land. But now the workmen are very much doubtful about the intention and the
approach of the employers. So, the workmen are not going to allow the selling
of the land and collect money because they are fully aware that that money
would not be utilised properly.

	Sir, there are textile industries in Mumbai - Karnawati - Karnataka,
Kanpur, Calcutta and Sholapur. They are all textile centres. But everywhere
millions of workmen are suffering. How to stop this entire episode, is the
biggest problem and the biggest challenge before the Government. Yesterday,
one of my friends, Shri Thorat from Maharashtra referred to the Laxmi Vishnu
Cotton Mills, Sholapur. My question is, how much money that mill has to pay to
the Government, to the electrical authority, to the provident fund, to the ESI
and so many other things. Unless they pay crores of rupees, there is no
possibility of running this mill. The Government is not taking any action
against those who are the owners of these mills. They have never been
arrested. If a workmen commits a small mistake, a chargesheet is issued
immediately, inquiry is conducted and he is thrown out of the employment. When
the mills and factories where thousands of persons work become sick and get
actually liquidated, no penal action is initiated against any employer. It is
a very unfortunate thing in this country. Most of the money has gone into the
scam and most of the money has gone into corruption. If you see the scenario
of this country today, a parallel economy is working. In that parallel
economy, the blackmoney is having edge over regular economic policy of this
country. We are appealing to these people that those who are tax evaders could
deposit 30 per cent of their income and they will be made free. There will not
be any penal action against them. So, we are bringing the tax evaders and
taxpayers on the same level. It is a very unfortunate thing. It means we are
encouraging the tax evaders to evade more and more taxes. We are also
encouraging the taxpayers not to pay taxes. This is how the entire economy of
our country is working.

	Sir, they are forcing the labour to accept VRS scheme. They are
utilising the gangsters for this purpose. These mill owners are themselves
utilising all the forces of the gangsters. They have started to force the
employees to collect their dues under VRS scheme. As you know, as a result of
that late Sunit Khatao and late Thakkar were killed by the same gangsters. Dr.
Samant was also killed by this method only. Here there was a roar. But this
roar is against whom? Without going into the details, without collecting the
facts, without going into further details and without collecting entire
information, people make certain allegations. It is really most surprising.
Whenever we work for the working classes, it is our utmost responsibility to
properly analyse it and see how the things are going on. Unless we examine the
case correctly, there is no use in making unnecessary attacks on the wrong
persons and the real culprits are allowed to go scot free. Even now if they
want to do anything, they will again kill somebody only because the money
makes miracles. Those people are playing this game as they have money.


	As regards BIFR, this is also one machinery under which the employers
are taking shelter. If an industry continues to be sick for two-three years,
the matter is referred to the BIFR. Once the matter is referred to the BIFR, a
number of meetings will be held. Every one has to come here from Mumbai and
other destinations. The workmen and representatives of the Unions find it very
difficult to come to Delhi and defend. Thereafter what happens? They get
concessions in provident fund, ESI, sales tax and in all the taxes. They also
get other reliefs. Thereafter, what happens is that BIFR takes its own time
and ultimately the working class suffers.

	The sickness of these mills depends upon so many ancillary industries
also. I would like to mention that those who manufacture various items of
machinery, accessories, stores, chemicals, etc., their direct dependence on
the textile workmen is 10:5. Due to the closure of the mills, 50 lakh family
members are likely to suffer. The textile industry has witnessed a phenomenal
growth during the last four decades. I do not know all of a sudden what has
happened.

	Now they started closing down the industry. My problem is, when I go
through all these reports on the subject as well as the comparative reports, I
notice that there is no necessity of closing down the mills. I will just read
out from the report: -


        "Production of cloth and employment generation: -  The  weaving
        capacity  in the organised mill sector has been stagnated for a
        number of years. The situation  changed  with  the  removal  of
        restrictions  in the creation of capacity in the textile sector
        as permitted by the Textile Policy of 1985. The  production  of
        cloth  in  the  mills  sector  in 1994-95 was 1,779 million sq.
        metres as compared to  the  production  of  1,990  million  sq.
        metres  in 1993-94. The production of cloth in the mills sector
        is estimated at 1,634 million sq. metres in 1995-96.  The  data
        on  production of cloth in the mill sector, the handloom sector
        and the powerloom sector during the past few years is  set  out
        in  Appendix  X  (PR).  The  employment  in  cotton-made fibres
        textile industry as on 31-10-95 was 10.43 lakhs.

MR.  CHAIRMAN :  Please conclude.

SHRI MADHUKAR SARPOTDAR :  There are two or three citations.  I will make them
and thereafter conclude.  Eventually somebody may ask what is the relief, what
is the  alternative  and  what  we  should  do  to  tackle this problem.  Some
proposal is to be made and that proposal is very  vital  and  very  important.
Instead  of  forcing the labourers to further unemployment and putting them to
suffering throughout the year after they render their services for  25  to  40
years in the industry, what the Government should do?  If the workers are made
surplus  and  if they are jobless and if they are having no income today, then
what is to be done?  That is also equally important to consider.

MR. CHAIRMAN : You can give the suggestion in the meeting at three o'clock now
which you will be attending.

SHRI MADHUKAR SARPOTDAR :  Let it be on record.  I will make the  proposal  so
that  tomorrow  somebody  will  not say that I could not make the proposal for
want of time.  How many mills can be saved by selling the land?  This  is  the
first question.

	The next question is who will save the land and preserve the money.

	Thirdly, money should not go into the hands of the employer.

	The mills should be developed and employees absorbed immediately.

	The legal dues of the workmen retiring, sick, retired or  died  should
be given priority in payment.

	Before   selling  the  land,  it  is  absolutely  necessary  that  the
Government should apply its mind correctly to the problem and after collecting
the money, whatever land is there, whatever may be the money  collected,  even
if  it  is  crores  of  rupees which they may collect by virtue of selling the
land, that money should be utilised for the guarantee  of  the  employees  and
then  only  in  the true sense of the term we will be rendering justice to the
labourers who have been working after the attainment of our  independence  for
years  together  in  the  industry. All these millowners have siphoned off the
money during all these years. Their money was utilised elsewhere and the mills
are made sick. They have not  paid  attention  for  the  development  and  the
modernisation  of mills and for the absorption of the workers. The victims are
the workmen and in order to save the working class, it is absolutely necessary
that  whatever  money  is  to  be  reserved,  should  be  utilised  for  their
development and welfare.

	So,  I  request  Shri  R.  L.  Jalappa, since he is looking into these
affairs, that he should apply his mind to this problem. He  has  got  sympathy
for the workmen. But only words of sympathy will not solve the problem. Actual
sympathy and solution to the problem is absolutely necessary.

	I hope the Government will do the needful in the matter.



SHRI RAM NAIK (MUMBAI NORTH):



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+±ÉMÉ-+±ÉMÉ VÉMɽþÉäÆ {É®ú +±ÉMÉ-+±ÉMÉ føÆMÉ ºÉä ½þÖ+É ½þè *


14.41 hrs		(Shri Chitta Basu in the Chair)




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Eòä EªÉÉ EòÉ®úhÉ ½þèÆ +Éè®ú =ºÉä EòèºÉä ºÉÖvÉÉ®úÉ VÉÉ ºÉEòiÉÉ ½þè *


	The  factual  reports  of  all  the  Textile  Mills in India should be
presented to the House.




=ºÉEòä +ÉvÉÉ®ú {É®ú, ¨ÉèÆ ºÉ¨ÉZÉiÉÉ ½þÚÆ ÊEò ªÉ½þ SÉSÉÉÇ VªÉÉnùÉ ºÉÉlÉÇEò ½þÉä ºÉEòäMÉÒ +Éè®ú <ºÉÒ ¦ÉÚʨÉEòÉ
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½þÉäxÉÉ SÉÉʽþB *





	9 ¨É<Ç, 1997 EòÉä ±ÉÉäEò ºÉ¦ÉÉ ¨ÉäÆ ¨Éä®úÉ BEò |ɶxÉ ¨É½þÉ®úɹ]Å º]õä]õ ]õèEºÉ]õÉ<±É
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        "Whether the Government are aware that the Board of  Industrial
        and  Financial  Reconstruction (BIFR) has issued notice to wind
        up Maharashtra State Textile Corporation (MSTC);




=ºÉEòä =iiÉ®ú ¨ÉäÆ ¨ÉÖZÉä ¤ÉiÉɪÉÉ MɪÉÉ lÉÉ, 

the Minister of Textiles said:

        
        "Having considered all the relevant facts and circumstances  of
        the case, the Board for Industrial and Financial Reconstruction
        (BIFR),  is  of  the  prima  facie  opinion that it is just and
        equitable that the Maharashtra State Textile  Corporation  Ltd.
        (MSTC) should be wound up."

        



VÉèºÉä |ÉäVÉÒb÷èÆ]õ ÊEòºÉÒ EòÉä ¡òÉƺÉÒ {É®ú SÉgøÉiÉä ½þÖB +Éb÷Ç®ú Eò®úiÉÉ ½þè ÊEò - `

The President
is pleased to hang this gentleman' - 


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	¨ÉÖZɺÉä {ɽþ±Éä Eò<Ç ´ÉEiÉÉ+ÉäÆ xÉä VÉÉä ºÉÖZÉÉ´É ÊnùB, ¨ÉèÆ =x½þäÆ nùÉä½þ®úÉEò®ú ºÉnùxÉ EòÉ ºÉ¨ÉªÉ
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=i{ÉÉnùxÉ ½þÒ ]õèEºÉ]õÉ<±É ʨɱÉäÆ xɽþÒÆ nùäiÉÒ ½þèÆ ¤ÉʱEò nùÉä Eò®úÉäc÷ ±ÉÉäMÉÉäÆ EòÉä xÉÉèEò®úÒ nùäiÉÒ
½þèÆ, nùä¶É Eòä EòÖ±É BEºÉ{ÉÉä]õÇ EòÉ 38 {É®úºÉäÆ]õ ¦ÉÉMÉ, <ºÉ <Æb÷º]ÅÒ Eòä ¤ÉÒ¨ÉÉ®ú ½þÉäiÉä ½þÖB ¦ÉÒ,
<ºÉºÉä +ÉiÉÉ ½þè - 38 

per cent of the country's exports are of textile exports.  


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±ÉMÉiÉÉ ½þè ÊEò ´ªÉ´ÉºlÉÉ{ÉxÉ EòÒ ½þè *





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