Messed finances forces about 500 textile mill closures in 10 yrs
29 May '06
1 min read
Southern India Mills Association (SIMA) reported that around 489 textile mills shutdown within the past ten years, 288 due to of messed up finances.
While 70 factories faced strikes and labour issues, there were 18 lockouts and 113 registered several other problems that forced their closure.
Almost 387 spinning mills and 102 composite mills were included, that led to loss of over 3.45 lakh jobs.
Tamil Nadu, where 118 spinning and six composite mills were closed, topped the list, followed by Maharashtra and Gujarat with 65 and 63 mills, respectively.
Meanwhile, Coimbatore topped the list with 47 closed mills, followed by Ahmedabad with 27 and Mumbai at 22 mills.
Total installed capacity of these closed cotton and man-made fibre textile mills (Non-SSI) was about 10.91 million rotors and 5,45,000 looms.
Only saving grace is the fact that rate of such closures has gradually dropped from 5.09 percent in 1998-1999 to 3.30 in 2002-2003 and from 0.83 percent in 2003-2004 to 0.39 in 2004-2005.
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