MR.  CHAIRMAN :  Please conclude now.

SHRI JAGAT VIR SINGH DRONA : I am just concluding. There is ample time.

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He will bear me out.

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SHRI RAM NAIK (MUMBAI NORTH):

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SHRI JAGAT VIR SINGH DRONA (KANPUR):

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MR. CHAIRMAN : Mr. Minister, please reply.

SHRI SURESH PRABHU (RAJAPUR): Sir, I have given my name. I am waiting to speak. My name is there.

MR. CHAIRMAN: Now, the hon. Minister has to reply.

THE MINISTER OF TEXTILES (SHRI R.L. JALAPPA): Sir, I am really gratified and I am grateful to you and to the hon. Members for having expressed their concern about the textile industry in general and about the workmen in particular. While speaking, Shri Sanat Mehta was mentioning about the Modernisation Fund. I would like to say that in the Seventh Plan, Rs.750 crore was set apart for modernisation.

SHRI SURESH PRABHU : May I point out, Sir, that there is no quorum in the House?

SHRI R.L. JALAPPA: He is creating mischief.

SHRI SURESH PRABHU : I have made a request for making a speech. I cannot speak whereas many other Members could speak. If I cannot speak, let us have the rules. Give a ruling, please.

SHRI R.L. JALAPPA: I request you to allow me to speak.

MR. CHAIRMAN: The bell is being rung -

MR. CHAIRMAN : Now, there is a quorum. The hon. Minister Shri R.L. Jalappa may continue.

SHRI R.L. JALAPPA: Mr. Chairman, Sir, I am really gratified and I am thankful to the hon. Members for their concern about the textile industry, in general and their concern about the employees, in particular.

A reference was made by Shri Sanat Mehta about the Modernisation Fund. In the Seventh Plan, a fund of Rs. 750 crore was created and I am given to understand that about Rs. 1,200 crore was spent in the Seventh Plan on Modernisation. But in the Eighth Plan, this Fund was not provided.

I went around some of the important States where these textile industries are situated. When I interacted with the management and the labourers there, I came to know that in order to compete in the global competition after three or four years -- probably that competition starts from this year -- we should equip ourselves with the latest technology. So, I requested the Planning Commission to provide this Technology Modernisation Fund and I should be thankful to the hon. Finance Minister for having accepted my suggestion. During the Budget Speech, the hon. Finance Minister also mentioned that a Technology Modernisation Fund was going to be created.

AN HON. MEMBER: And, he did not provide that Fund.

SHRI R.L. JALAPPA: Now, as you have all approved the Budget, he will provide this Fund.

Sir, I know the problems that are going to be faced by these employees whenever a mill becomes sick. This sickness is due to so many reasons. I need not dwell upon the reasons of the sickness. But 301 units stand referred to the BIFR before 31.03.1997. The number of closed mills is 207 out of which 38 mills are closed under liquidation.

The other mills are temporarily closed on account of financial difficulties or lack of trade and other things. The main reason for sickness in the textile mills could be attributed to structural transformation as a result of which composite units in the organised sectors are losing ground to powerloom.

The hon. Member was mentioning about Manchester - that Ahmedabad was the Manchester of India. Even now it is the Manchester of India because there is no textiles industry in Manchester! I am sorry, it is only in a lighter vein that I have said it. This sickness has not developed during these ten months or one year. This is hereditary. I have inherited this legacy. I am not responsible for the sickness. The Government is also trying to see that by providing technology fund for modernisation those mills at least which are limping now could be revived and employment provided to the people. The Government is not referring them to BIFR. Whenever a company loses beyond its share capital, automatically it is referred to the BIFR. So, we have nothing to do with the BIFR. We are not referring them to the BIFR. As far as NTC mills are concerned, yes, we have referred them to the BIFR. But as far as private mills are concerned, we are not referring them to the BIFR. The BIFR is taking its own decision and we cannot influence those decisions also.

About TWRF, that is, Textile Workers' Rehabilitation Fund, a total of Rs.84.61 crore has been paid to 42461 workers from 28 mills during the last year. This year we have provided Rs.10.21 crore in the Budget for paying to the Textile Workers' Rehabilitation Fund. The fact that around three hundred textile units are before the BIFR is no doubt a matter of concern for us. We are alive to this fact. We are also taking measures to strengthen the textiles industry. However, I would like to urge upon the hon. Members not to lose sight of the textiles sector in its entire perspective.

To describe the entire textiles industry as sick is not correct. The spinning sector in particular has shown vibrancy and growth over the years. It is not a sunset industry as was mentioned by hon. Member Shri Sanat Mehta.

The annual investment in textiles machinery increased from Rs.2100 crore in 1993-94 to Rs.3400 crore in 1995-96. To illustrate it, in 1980 there were 400 spinning mills and 291 composite mills. In 1990 there were 770 spinning mills and 281 composite mills. In 1996 there are 1310 spinning mills and 275 composite mills. I do agree that the number of composite mills is coming down gradually.

Why is it so? It is because we have got about 1.7 million powerlooms in the unorganised sector which are competing with the organised sector. They have got some facilities. Their investment is less. Sometimes, they do not pay taxes and they have a different system of billing for electricity. They pay labour charges at a rate lesser than that of the organised sector. So, these mills in the organised sector are not in a position to withstand the competition from powerlooms.

The hon. Member was mentioning about yarn. I am really happy to bring to the notice of this hon. House that the production of yarn during 1991-92 which was 18.6 lakh tonnes increased to 23.79 lakh tonnes in 1995-96. I would like to mention here that for the last two years we have been exporting our yarn to Japan. Japan is one of the very good markets for us now. During the last year 80 million kg. were allowed to be exported. When they came to me for enhancing the quota, I thought that it was fit to enhance the quota because instead of exporting cotton, we could export the yarn so that value added material could be exported and we can earn more foreign exchange. I enhanced it by another 30 million kg. last year. This year, I have given them 120 million kg. In addition to that, when they came to me saying that they do require some more quota for six months, I have given them 20 million kg. more. Our performance in this sector is that we have exported 58 per cent more than what we exported during the last year, 1994-95. This is an achievement and we should thank the millers for having achieved such a spectacular progress.

The total production of cloth has shown an increase from 22,588 million sq. metres in 1991-92 to 28,631 million sq. metres in 1995-96. Of course, for the reasons I mentioned earlier, the production in the mills in the organised sector has come down. In 1991-92, the mill sector produced 11 per cent of the cloth produced in the country. Today, it amounts to six per cent. It has come down.

Shri Sanat Mehta was mentioning that the industry was neither better nor has gone bad. I would say, `No'. The industry is thriving well. I have already informed the House about the investment made during the last two years. In the last five years, 600 mills have been established. Our production is twenty per cent. We have maintained that twenty percent. The export of textiles has gone up to Rs.35,000 crore. We are not lagging behind.

Of course, I have already explained myself to you about the competition that is being faced by this organised sector. Textile industry means not only these mills, but it also means handlooms, powerlooms, even khadi weaving which includes all these things. If we take the overall performance, I am glad to say that we are not lagging behind in spite of 130 mills being sick.

I would like to touch upon the proposal for area regeneration of closed textile mills of Ahmedabad about which a mention was made by Shri Sanat Mehta and Shri Harin Pathak. That is dealt with by the Industries Department. When it came to us, our Ministry has recommended that this should be considered. NRF amount is not meant for private mills or cooperative mills or State mills. It is only for the NTC mills i.e, central PSUs.

A point was raised about the wages also -- that wages are not being paid. It is true that there was some problem in the months of November-December last year. When this was brought to the notice of the hon. Finance Minister, he immediately considered and released wages for two months. Of course, wages for January were also paid. The wages for February are also being released, which is Rs.27 crore. We are going to pay them the rest of the money within a month or two.

SHRI NIRMAL KANTI CHATTERJEE (DUMDUM): There will be backlog of two months then.

SHRI R L JALAPPA: No. We are paying them that also. How can you pay wages for the next month, without clearing the previous months' wages? We will first clear the previous months' wages. It may take some time; it may not be possible to give them on time. It may take one or two months. I request the employees to cooperate with me.

SHRI NIRMAL KANTI CHATTERJEE : The problem is that if you pay a particular month's wages after two months, by that time, another two months' wages would become due. So, every month, you have to pay at least the wages for more than one month so that the backlog is cleared. That has to be done.

SHRI R L JALAPPA: We are trying our best.

SHRI NIRMAL KANTI CHATTERJEE : You seek the cooperation of the person whom you thanked!

THE MINISTER OF FINANCE (SHRI P. CHIDAMBARAM): Both of them are right and I am only wrong!

SHRI R L JALAPPA: Shri Thorat was expressing concern about the high price of cotton which is varying year to year. This depends on demand and supply. When the supply is more and the demand is less, the price would come down. Nobody wants to purchase and stock it because the interest charges are more. One has to pay interest at the rate of 18 per cent. There would be another two per cent by way of other charges. So, it would become 20 per cent. So, nobody wants to hoard it for months together.

I caught hold of mill owners and asked them: I have given you so much of yarn to be exported, what is the matter? Why are you not purchasing? They told me that they have to pay 18 per cent interest and that they would purchase as and when they want. Now, the prices have firmed up and it is a few rupees more than what it was existing during the corresponding period of last year.

He had spoken about the hank-yarn also. A survey has been conducted about the handloom availability in the country; we have received the survey reports of all but two or three States. We will find out as to how many of them are silk woven and how many of them are using cotton. We will assess the requirement; and if necessary, we may try to change this hank-yarn obligation or reservation. Here, I want to bring to your notice that the quality of cotton that is being produced in our country is going down day by day. The production also is going down day by day. The quality is not good and the production per hectare is also going down.

When we compare our figures with those of the advanced countries, approximately, we find that one-third is our production. So, I discussed with my officers and I went to the hon. Vice-Chairman of the Planning Commission. I requested him to permit us to have Cotton Technology Mission on the lines of the Oil Technology Mission. I should be grateful to him that he has conceded and the Ministry of Agriculture is at it. I hope it will come up within a month or two. I have taken these decisions suo motu. I went to the Deputy-Chairman of the Planning Commission, Prof. Madhu Dandavate and brought to his notice about the necessity of the Technology Modernisation Fund and Cotton Technology Mission. I have also requested him for these to which he has conceded.

Shri Narayana Swamy, in my absence, had spoken about silk. We are now importing some quantity of silk through advanced licensing system so that they could export the manufactured goods. But as far as our indigenous silk is concerned, it is not being exported in a big quantity because it suffers from some deficiencies. For internal purposes, it is very good silk. That lustre is not there in any other silk . It is not there in imported silk. But imported silk is very easy for weaving. They use warp and weft and the breakages will be more here. So, when I went to the laboratories and other places, I thought that we could improve the reeling system. I went with a proposal to the Planning Commission. They have agreed to give us the weaving machines, subsidising to the extent of 30 per cent - 15 per cent from the Government of India and 15 per cent from the State Governments - and the remaining money has to be repaid in ten instalments without any interest. I hope, necessary orders will be issued within a short time. This is going to improve our silk production. We also want to see that quality silk is also produced. I have spoken about this to the officials of the Central Silk Board and I am inviting the research workers in the field.

thought I could plough back something to the growers who are responsible for this profit. So, I have already given instructions to them that in all the APMCs, wherever we are getting huge quantity of silk, large sheds must be provided to them for the convenience of the farmers so that this contamination can be prevented to a larger extent. I have also given instructions that the Universities of Agricultural Science shall be provided with more money for research and development work. I am going to invite the Vice-Chancellors and technicians of Universities of Agricultural Science. I will have a discussion and provide as much money as they want. In addition to about 38 villages taken is what we are doing to develop good variety of cotton and to see that their productivity goes up.

17.00 hrs.

In order to see that the farmers get better prices for their cotton we did allow the export of 10 lakh bales before December. Previously only two lakh bales were allowed to be exported. I thought that the benefit should go to the farmers. Whenever cotton is available with the farmer, he would be benefited if its export is allowed. So, I allowed 10 lakh bales of cotton to be exported before December. I am sorry to say that much of the cotton could not be exported because of non-remunerative prices in the international market. In 1994-95 it was one dollar per pound of cotton. In 1995-96, it was 86-88 cents and now it is 72-74 cents. That is why the exports have not gone as per our expectations.


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