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FINAL BOOK.P65 annual report 2006-07 CHAPTER I HIGHLIGHTS His Excellency Shri Bhairon Singh Sekhawat, Vice-President of India giving away the Shilp Guru Awards to Master Craftsperson at a ceremony in New Delhi on September 9, 2006. Also seen in the picture Shri Shankersinh Vaghela, Hon’ble Minister of Textiles. he Indian Textiles Industry has an agriculture. Thus, the growth and all round overwhelming presence in the development of this industry has a direct Teconomic life of the country. Apart bearing on the improvement of the from providing one of the basic necessities economy of the nation. of life, the textiles industry also plays a pivotal role through its contribution to The Indian textiles industry is extremely industrial output, employment generation, varied, with the hand-spun and hand- and the export earnings of the country. woven sector at one end of the spectrum, Currently, it contributes about 14 percent and the capital intensive, sophisticated mill to industrial production, 4 percent to the sector at the other. The decentralized GDP, and 16.63 percent to the country's powerlooms/ hosiery and knitting sectors export earnings. It provides direct form the largest section of the textiles employment to over 35 million people, sector. The close linkage of the Industry which includes a substantial number of to agriculture and the ancient culture and scheduled castes, scheduled tribes, and traditions of the country make the Indian women. The textiles sector is the second textiles sector unique in comparison with largest provider of employment after the textiles industry of other countries. 3 ministry of textiles This also provides the industry with the declining. This is attributable to the capacity to produce a variety of products structural transformation in the industry, suitable to different market segments, both leading to the delinking of weaving from within and outside the country. spinning, and the emergence of the decentralized powerlooms sector. In the The major sub-sectors that comprise the organized sector the loomage capacity textiles sector include the organized Cotton/ declined from 1.23 lakh in March 2000, to Man-Made Fibre Textiles Mill Industry, the 0.86 lakh in March 2005, and to 0.69 lakh Man-made Fibre/ Filament Yarn Industry, in January 2007. the Wool and Woollen Textiles Industry, the Sericulture and Silk Textiles Industry, Over the years, the production of cloth in Handlooms, Handicrafts, the Jute and Jute the mill sector has been fluctuating. It Textiles Industry, and Textiles Exports. declined from 1670 mn. sq. mtrs. in 2000- THE ORGANISED TEXTILES INDUSTRY 2001 to about 1576 mn. sq. mtrs. in 2005- 06, and is projected at 1729 mn.sq.mtrs. The Cotton/Man-made fibre textiles industry in 2006-07. As on January 31, 2007, is the largest organized industry in the employment generation in the cotton/man- country in terms of employment (nearly 1 made fibre textiles industry was 9.4 lakh. million workers) and number of units. The total production of cloth by all textiles Besides, there are a large number of sub-sectors, i.e., mill, powerlooms, subsidiary industries dependent on this handlooms, hosiery and khadi, wool and sector, such as those manufacturing silk has shown an upward trend in recent machinery, accessories, stores, ancilliaries, years. During 2006-07, the total production dyes & chemicals. As on January 31, of cloth will touch 54,260 mn. sq. mtrs., 2007, there were 1818 cotton/man-made showing an annual growth of 5.24% during fibre textiles mills (non-SSI), with an the last five years. Cloth production in the installed capacity of 35.37 million spindles decentralised powerlooms sector during and 0.45 million rotors. This is expected the last five years has shown a significantly to increase to 39.50 million spindles and higher annual growth rate of 5.4%. 0.62 million rotors by March 31, 2007. The production of spun yarn, which was 3160 PER CAPITA AVAILABILITY OF CLOTH million kg. in 2000-2001, increased to The satisfactory performance in the 3458 million kg. in 2005-06, and is production of cloth has resulted in favorable anticipated to touch 3791 million kg. during per capita domestic availability of cloth. 2006-07. Amongst spun yarns, cotton yarn During 2004-05, the per capita availability production has fluctuated, depending upon of cloth was 32.63 sq. mtrs., and it increased the cotton crop during respective years. to 36.53 sq. mtrs. in 2005-06, and is likely Blended and 100% non-cotton yarns have, to increase further in 2006-07. however, shown a consistent increase year after year. During 1999-05, the capacity TECHNOLOGY UPGRADATION FUND utilization in the spinning sector was SCHEME (TUFS) between 80% to 93%. The Technology Upgradation Fund Scheme, Weaving capacity in the organized sector, the flagship scheme of the Ministry of alongwith the number of composite textiles Textiles, was launched on April 1,1999, mills, however, has stagnated, because with the objective of making funds available the Government policy had permitted only to the domestic textiles industry to upgrade marginal expansion in the organized mill the technology of existing units, and also to sector. Even after removal of these set up new units with state-of-the-art restrictions in the Textiles Policy of 1985, technology in order to enhance its viability weaving capacity has been consistently and competitiveness in the domestic and 4 annual report 2006-07 international markets. The scheme, which The scheme covers spinning, cotton ginning was to last upto March 31, 2004, was & pressing, silk reeling & twisting, wool extended till March 31,2007. In the Xth five scouring & combing, synthetic filament year plan (2002-07), Rs.1,270 crores was yarn texturising, crimping and twisting, earmarked for the scheme. The Government manufacture of viscose filament yarn (VFY)/ have decided to continue the scheme in the viscose staple fibre (VSF), weaving/knitting XIth five year plan, and Rs.911.00 crores (including non-wovens) and technical had been earmarked for the scheme during textiles. It also covers the manufacture and 2007-08. processing of fibres, yarns, fabrics, garments and made-ups, the jute sector, Benefits and handloom sector (since 2006-07). ● 5% interest reimbursement of the normal interest charged by the lending Progress agency on Rupee Term Loan (RTL); or ● 5% exchange fluctuation (interest & The progress of TUFS since its inception repayment) from the base rate on upto December 2006 is at Table 1.1. Foreign Currency Loan (FCL); or TEXTILES WORKERS' REHABILITATION ● 15% credit linked capital subsidy (CLCS) for the SSI textiles and jute FUND SCHEME (TWRFS) sectors; or The Textiles Workers' Rehabilitation Fund ● 20% credit linked capital subsidy Scheme was launched on September 15, (CLCS) for the powerlooms sector; or 1986, to provide interim relief to textiles ● 5% interest reimbursement plus 10% workers rendered unemployed due to the capital subsidy for specified permanent closure of any particular portion processing machinery. of, or entire textile unit. The assistance ● 25% capital subsidy on the purchase under the scheme is extended to eligible of new machinery and equipment for workers to enable them to settle in other pre-loom & post-loom operations, employment. This assistance is not upgradation of handlooms, and testing heritable, transferable or capable of being & quality control equipment for attached on account of any other liabilities handloom production units. of the worker. The worker's eligibility Table 1.1 (Amount in Rs. crores) Period Received Sanctioned Disbursed No. of Total No. of Total Loan No. of Loan applications cost of applications cost of amount applications amount projects projects 1999-00 407 5771 309 5074 2421 179 746 2000-01 719 6296 616 4380 2090 494 1863 2001-02 472 1900 444 1320 630 401 804 2002-03 494 1835 456 1438 839 411 931 2003-04 867 3356 884 3289 1341 814 856 2004-05 986 7941 986 7349 2990 801 1757 2005-06 1086 16194 1078 15032 6776 993 3962 2006-07 (31.12.06) 2000 15822 1966 14965 6536 1863 3983 Total 7031 59115 6739 52847 23623 5956 14902 5 ministry of textiles ceases if he takes up employment in as compared to the corresponding period another registered or licensed undertaking. of the previous year. The total man-made Assistance is not curtailed if the worker fibre production is expected to increase by engages himself in self-employed activity. about 14% during 2006-07, as compared to 2005-06. The production of Viscose PROGRESS Staple Fibre, & Acrylic Staple Fibre is expected to decrease by 10%, and 3%, Till December 2006, 47 mills were found respectively, during 2006-07. The eligible under the scheme, and 99,780 production of Polypropylene Staple Fibre workers of these mills were provided relief and Polyster Staple Fibre is expected to of Rs. 186.56 crores. The State-wise increase by 26%, and 11%, respectively cumulative position is at Table 1.2. during 2006-07. THE MAN-MADE FIBRE/FILAMENT The total production of man-made filament YARN INDUSTRY yarn increased by 9%, during April - August 2006, as compared to corresponding period The industry comprises fibre and filament of the previous year. The total filament yarn yarn manufacturing units of cellulosic and production during 2006-07 is expected to non-cellulosic origin. The cellulosic fibre / increase by about 11%, as compared to yarn industry is under the administrative 2005-06. The production of Nylon Filament control of the Ministry of Textiles, while the Yarn and Viscose Filament Yarn is expected non-cellulosic industry is under the control to decrease by 2% during 2006-07. The of Ministry of Chemicals and Fertilizers production of Polypropylene Filament Yarn (Department of Chemicals and Petro and Polyster Filament Yarn is expected to Chemicals.) increase by about 12% during 2006-07 as The production of man-made fibre during compared to 2005-06.
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