The Maharashtra Government has cancelled the Power Loom Concession to H. T. power Loom Industries in the State vide Cabinet decision dated 28/10/2015 & G R in this regard is already issued on 28/10/2015.
Prior to this decision the HT Power Loom Consumers were getting Energy at Rs. 5.66 Per unit as against the L T Power Loom consumer were getting Energy at Rs. 2.57 plus Demand Charges, 9.3%, Electricity Duty,Rs. 0.09 Per Unit Tax on Sale, Rs. 1.00 Fuel adjustment Charges Per Unit. Thus, HT Consumer is Paying Rs. 3.09 More in Basic Rate of Energy i.e, 120% more as compared to L. T. Power Loom Consumers
Due to new Decision the Comparative Hike in Tariff as compared to LT consumers is in Demand Charges 340% and in Energy Charges 171% as per following table : –
Head Particulars LT Power Loom HT Power Loom Hike In Rs Hike in%
Per KVA 50 220 170 340%
Energy Charges 2.66 7.21 4.55 171%
Now, HT Power Loom Consumers Need to pay more in Demand Charges by 340% and in Energy Charges by 171% and this Gap is widened by Rs. 2.75 to Rs. 3.00 per Unit
In Maharashtra the power is already costly as compared to other States. The rate of Power in Maharashtra is Rs. 8.23 per Unit + Fuel adjustment Charges of Re. 1.00 i.e.Rs. 9.23 and if you compare this with other States i.e. Karnataka Rs. 6.50 to Rs. 6.80 per Unit, GujaratRs. 4.95 to Rs. 6.35per Unit, Andhra PradeshRs. 6.60 to Rs. 7.00per Unit, Madhya PradeshRs. 6.60 to Rs. 6.90per Unit, Chhattisgarh Rs. 5.65 to Rs. 6.00per Unit & Goa Rs. 4.80 to Rs. 5.10per Unit.
In addition, there is concession to the Power Loom Units in Karnataka & Gujarat of Re. 1.00 per Unit and Andhra Pradesh is Giving 2.50 per Unit of electricity consumed.
All these units arelocated in the boundary area ofadjoining States and it is quite likely that HT Power loom units in Maharashtra may be migrated to nearbyStates.
There are total 24.75 Lacs Power Looms in the Country and Maharashtra is having 12.50 Lacs out of which 60 to 70 thousand are Auto Power looms like Jacquards, Shuttle-less Rapier, Air-Jet, Water-Jet based technology. These looms itself cost Rs. 25 to Rs.30 lacs per loom plus other cost of infrastructure of Land& Building, Humidification, back Process, etc. which turns to Rs. 40 to Rs. 45 lacs per loom. The HT Power Loom Industry is having investment of approximately 30000 Crores as against L T Power Loom industry having investment of Rs. 6000 to Rs. 7000 crores.
As regardstoemployment HT power Loom is having 1.50 to 1.75 Lacs Direct Employment @ 2.5 Per Loom in addition to Indirect Employmentof same amount. Thus, 3.00 to 3.50 Lacs Employment. There is Equal Employment Generation in Pre & Post Activity i.e. Ginning, Spinning, Dyeing, Warping Sizing, Processing, Garments Manufacturing and other ancillary business.
As regards the production quantum of this sector it is 315 Crore Meters Annual production on Auto Looms in Maharashtra. The Average Monthly Salary in this sector is Rs. 30,000 in addition to PF, ESIC, Gratuity, Bonus, Insurance, HRA, Welfare Fund, Security arrangement & other facilities
This sector hasMajor Exports in Fabric, made-ups, Garments & Home Furnishing. India share in Textile Export is in FY 2014-15 amounting to Rs. 230293 Crores and in FY 2013-14 amounting to Rs. 227337 Crores.Registering growth of just 1.30% in 2014-15 as compared to 2013-14. This growth was mainly due to appreciation of USD $ & in terms of volume we have registered no growth just because of cost factors. If Government does not consider the solutions of crisis of Textile industry the whole scenario will be affected adversely.The HT loom industry can’t survive in the local & global market due to these non-competitive rates.The major hurdle in Global Market is competition from China, Bangladesh, Pakistan& Sri-lanka.
GoI textile policy objectives are to replace all old plain looms with new semi auto or auto looms based on modern shuttle-less weaving technology such as Projectile, Rapier, Air-jet, and Water-Jet etc.TUFS, SITP, GIS, GWS etc. are the various schemes to achieve this goal.
In Maharashtra the situations is different. GoM has also decided to develop Textile Industry in Cotton growing Vidarbha&Marathwada regions for “Farm to Garments” development & with an object of “Make in Maharashtra”.This is a State-of-the-Art industry working in global competitive market & needs help to encourage new units to be set up in backward areas of Vidarbha&Marathwada regions. Industrial Development of the State depends on the best infrastructural facilities to the industries at the most competitive rates. The main question is how 30 % to 35 % higher energy rates can survive the industry and it will further lead towards migration of the industries or further there will be no expansion in this sector. It will make severe impact on development & economy of the State.
The State is getting Rs. 850 Crores revenue per annum towards VAT, PT, LBT, ED. The Central is getting Rs. 6000 Crores towards Excise Duty, IT, Service Tax, TDS, Tax on dividend etc. from HT Power Loom Industry and share of Maharashtra in this revenue is Rs. 1200 to Rs. 1500 crores. So as against revenue of Rs. 2000 crores the concession to HT Power Loom Industry is Rs. 250 to Rs. 275 Crores which is negligible.This amount is much meager & negligible as compared to invisible profits & growth, the prospective employment generation, revenue generation & development of the backward areas & the farmers therein. Farmer suicide issues will be reduced if proper care & development of this industry takes place.
The FAITMA – Federation of All India Textile Manufacturers Association met Hon’ble Chief Minister of Maharashtra with delegation representing HT Power Loom industry and explained all the details and Hon’ble CMagreed that the revised rates are not feasible for the HT Power Loom industry & assured that he will certainly resolve the matter considering the Textile Industrial Growth in Maharashtra and Policy of State i.e. Make in Maharashtra, Farm to Garment and Development of Vidarbha&Marathwada belt and further directed Energy & Textile Secretary to put proposal to remove discrepancies in Energy Rate.
The Delegation consists of Mr. Prem Kamal (President FAITMA), Mr. PratapraojeeHogade, President – Maharashtra State Electric Consumers Association, and the representatives of Siyaram, Raymond, Mandhana, Morarjee, Soktas, Monti, Indo-count, PeeVeeJam, Oswal, Nahar, Dicitex, Ddecor, Duratex, Encot, Nirvan, Dhodias, Bombay Rayon, GM Fabrics, Beeklene&Mecords etc.