Timely intervention by the Energy Minister of Gujarat, Saurabh Patel has resolved the problem of lignite supply to 400 units in Surat; however, only 65 percent of the units is able to function right now and the others waiting to be recovered.
Delay of insurance payment has held the functioning of 25 to 30 percent of units whereas unavailability of grey fabrics has forced another 25 to 30 percent to remain closed.
This has led to severe crises in the textile sector in Surat.
Out of six lakh power looms, which used to produce 2.25 crore MT of grey fabric in Surat, only four lakh looms have become fully operational producing around 1 to 1.5 crore MT of grey fabric.
This situation has caused disturbance in the production cycle of ultimate fabric, informed Arun Jariwala, former President of Surat Chamber of Commerce and the current President of Surat Art Silk Cloth Manufacturing Association.
Fleeing of workers mostly belonging to Uttar Pradesh, Bihar and Orissa after the flood has been nominal compared to 1992 when plague broke loose.
Processing units, which have been affected are suffering capital loss of Rs30 crore and the production loss is Rs27 crore.
Ajoy Bhattacharya, honorary Secretary, Southern Gujarat Chambers of Commerce and Industries informed that even after the proper functioning of units, the severe effect on shops has led to dearth of demand.
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