Maharashtra spinning mills seek extension of power rebates – Financial Express

Of The complete of 150 cooperative spinning mills Inside the state, solely 80 mills are presently useful with an put in performance of 15 lakh spindles Daily. (Representational picture)

The rebate given by the state authorities to spinnin…….

Of The complete of 150 cooperative spinning mills Inside the state, solely 80 mills are presently useful with an put in performance of 15 lakh spindles Daily. (Representational picture)

The rebate given by the state authorities to spinning mills on buy of power will expire by The prime of December this yr, prime officers of the Maharashtra State Cooperative Textile Federation (MSCTF) said. The state authorities had granted A 3-yr subsidy of Rs 3 per unit to the mills till December 31, 2021. The mills are anticipated to Arrange Photo voltaic power crops at their premises Inside these three yrs in lieu of the subsidy.

MSCTF, Collectively with the representatives of cooperative spinning mills, met the Maharashtra state textual content materialiles commissioner in Nagpur final week To hunt An further extension on The power rebate, Ashok Swami, chairman, MSCTF, said. “The mills are presently discovering it troublesome To buy cotton For his or her requirements As a Outcome of of extreme prices of the commodity. The extreme Electricity costs will solely add to their factors,” he said. Not Definitely one of the mills have Arrange Photo voltaic power crops because permission has been granted Only for 1-megawatt (MW) performance power crops, which generate Electricity for barely two hours, Swami Recognized. It is not viable for mills to Arrange these crops till The federal authorities relaxes this situation and grants permission for 10-MW to 12-MW power crops, he said.

Cotton prices have gone up from Rs 38,000 per candy to Rs 68,000 per candy and it has Discover your self to be troublesome for mills To buy cotton For his or her requirements, he said. The market state of affairs is pretty bearish As a Outcome of of low demand for textual content materialiles, he said. The recession Inside the textual content materialile enterprise As a Outcome of the previous 5-six yrs, greater Electricity costs than completely different states, rising cotton prices and no enhance in yarn costs, and extreme Rates of curiosity on financial institution loans have led to monetary misery for the enterprise, he Recognized. The extreme power costs will Finish in An complete collapse of the mills, he said. These factors have been raised final week with the state minister for textual content materialiles Rajendra Patil and Parag Jain, secretary, textual content materialiles, he said. The millers will now strategy chief minister Uddhav Thackeray To hunt aid for the enterprise and The federal authorities to grant An further extension on power subsidy Alongside with permission for greater performance Photo voltaic power crops, Swami said.

Of The complete of 150 cooperative spinning mills Inside the state, solely 80 mills are presently useful with an put in performance of 15 lakh spindles Daily. The annual cotton requirement is round 12-13 lakh bales and the gross sales turnover are Rs 2,500 crore yrly. The state authorities has invested Rs 2,500 crore Inside these mills as shares capital. These mills give revenues to each the central and state authorities Inside The Sort of numerous taxes of Rs 200 crore to Rs 250 crore yrly.

Ramchandra Marathe, managing director of the federation, said that the mills have strategyed the Centre To hunt a cap on the extreme cotton prices. “The small household-run looms Inside the state face greater factors As a Outcome of they Want To close down their models In the event that they will’t afford cotton prices,” he said. Pradeep Jain, president, Khandesh Gin Press Enchancment Affiliation, Recognized that cotton prices have dropped by Rs 1,000 to Rs 2,000 per candy and have come Proper down to Rs 66,000 per candy from Rs 68,000 per candy since final week. Market arrivals have enhanced and farmers have realised that prices can’t go up further, he said. Cotton prices had touched Rs 10,000 per quintal in some mandis Inside The primary week of November.

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Source: https://www.financialexpress.com/industry/maharashtra-spinning-mills-seek-extension-of-power-rebates/2370696/

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