FIEO President visits Erode, Bhavani
As individual textile enter prise cannot afford the much-needed technological upgradation, the formation of clusters under hi-tech weaving parks can bring in a culture of corporate governance by defining properly the man, machine, technology and resources utilization, said FIEO President Mr. Ganesh Kumar Gupta after visiting Cauvery Hi-tech Weaving Park in Komarapalayam on 12 March. Mr. Gupta visited Erode and Bhavani, known as ‘the Powerloom Clusters of South India,’ to have the first hand knowledge of the issues confronted by exporters in the two towns who are involved in production of high value goods for international market.
Chairman of the Cauvery Hi-tech Weaving Park, Dr. M.S. Mathivanan, who received FIEO President at the Park, briefed him on the facilities available in the Park as well as the hurdles faced by the Looms due to shortage of electricity supply. He informed that efforts were being made to set up a ‘hi-tech weaving park,’ largely focussing the powerloom clusters of Tiruchengodu and Pallipalayam in the State’s Namakkal district. "Initiative has been taken to find a suitable location for the park in the district that will be in close proximity to key powerloom weaving centres falling in Namakkal/Salem districts," he added.
The Cauvery Hi-tech Weaving Park that came up at Komarapalayam is said to be the brainchild of PDEXCIL Chairman Dr. M. S. Mathivanan. The Hi-Tech parks for the decentralized powerloom sector have been set up under the Technology Upgradation Fund Scheme, Textile Centre Infrastructure Development Scheme and the Group Workshed Scheme sponsored by Central Government. On becoming fully operational, this Park is expected to generate around 3,000 jobs with 2,400 looms spread in an area of 40 acres. A turnover of about Rs. 300 crore is expected to be achieved by the Park through export of most of the items produced.
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The hi-tech weaving park projects were initiated by the Government to enhance the capacity of the country’s textile sector and the quality of its production by enabling independent weavers to consolidate under the hi-tech parks. The parks were promoted to enable the weavers to take advantage of tariff benefits, removal of trade barriers, bringing in latest machineries and knowledge transfer, which would in turn result in increased productivity and an international marketing platform. |
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Mr. Ganesh Kumar Gupta, President, FIEO addressing the meet at Erode |
The direct benefits from hi-tech weaving parks are technology upgradation in machinery and accessories (modern benchmarked machinery at affordable rates), institutional credit at concessional rates, financial subsidy and loan funds, improved working conditions and development of labour skills.
In a meeting organized by Powerloom Development & Export Promotion Council (PDEXCIL) with more than 60 exporters at Erode, FIEO President said increased allocations in the budget for textiles upgradation fund, integrated textiles park and mega clusters schemes for handloom and handicrafts sectors would benefit the exporters in Erode.
Referring to the issue of drawback, Mr. Gupta said, "Small increase in drawback rates for textiles sector is of hardly any meaningful assistance. The increase for most variety of textile garments is in the range of 0.25 to 1% and for fabrics in the range of 0.25 to 0.5%, whereas the industry needs not less than 4 to 5% increase to offset the loss against rupee rise."
On India’s export performance during the last nine months from April to December 2007 recording a growth of 11.8% in dollar terms and 21.76% in rupee terms, FIEO Chief said, "The data reflects mainly the growth in sectors like petroleum, gem & jewellery and engineering. Petroleum prices have risen from US $ 50-52 per barrel to US$ 100, gold prices have gone up from US$ 300 per oz to US 950 per oz and the steel prices have also gone up. On the flipside, textiles have shown a negative growth of 8%, handicrafts exports have declined by 60%, whereas pharma and leather sectors have shown little positive growth."
Dr. M S Mathivanan, Chairman, PDEXCIL said that the two mega-cluster projects for the powerloom industry, Erode in Tamil Nadu and Bhiwandi in Maharashtra announced by the Finance Minister, would benefit not only the powerloom industries in the area where they were located but also the adjoining region and states. "It is for the first time that the Government has announced such a project for the powerloom industry. The two clusters, with an investment of Rs 70 crore each, would have modern machineries, testing services, and computer aided design studios, among others. This would help the development of international quality products," he added.
Erode exporters apprised the FIEO President with frequent interruption in electricity supply and other infrastructure related issues faced by them. On this, Mr. Mathivanan informed that there was a directive to the industry from the State Electricity Board not to use electricity for whole day once in a week.
Mr. M Senthilkumar, Chairman, Palladam Hi-Tech Weaving Park, Mr. M A Ramasamy, Past Chairman, SEPC, Mr. V P Subramaniam, President, Garment Exporters Association, Erode, Mr. V Kumar, President, Karur Exporters Association and Mr. S S Yuvaraju, General Secretary, Garment Exporters Association, Salem were present at the meeting.
"We will have to work towards eliminating poverty"
If India has to catch up with the rest of the world, then we cannot remain in an island of prosperity in the ocean of poverty and scarcity; we will have to work towards eliminating poverty. FIEO President Mr. Ganesh Kumar Gupta said this while addressing the Decennial Annual Day Celebration of SSM Engineering College in Komarapalayam (Tamil Nadu) as the Chief Guest on 12 March.
"The world has become a global village and competition is rising in every sector which demands a consistency in our efforts, dedication and performance. I am happy that the management of SSM Engineering College is following such a practice to recognize the outstanding students as it will boost the confidence of the young pool of talent before their amalgamation with the outside world." Said Mr. Gupta.
Dr. M S Mathivannan, Chairman, SSM Trust highlighted the educational standards maintained by the College saying that more than 50% of the students of the college got placement through campus interviews. He shared proudly that one of the students of the college was employed in NASA. He noted that the college, with support from various industries, had made the curriculum more practical as per the needs of the industry to enable the industry absorb the students directly from the college.
Towards the end of the ceremony, Mr. Ganesh Kumar Gupta and Mrs. Abha Gupta gave away best performance awards to the students.
SSM Engineering College, Komarapalayam is a unique college in Tamil, which especially caters to the manpower needs of textiles and handloom industries in Southern Part of India. The college offers specialized courses in engineering like textile technology, textile chemistry, etc.
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Sitting on dais from left: Dr. Mathivannan, Chairman SSM Engineering College; Mr. Ganesh Kumar Gupta, President, FIEO; & Mrs. Abha Gupta. |
Mr. Ganesh Kumar Gupta, President, FIEO giving away best performance awards to the students SSM Engineering College. |
