17 cotton and man-made fibre mills close in 11 months
As many as 17 cotton and man-made fibre textile mills spread over 8 states closed between June last year and May this year.
"The major reported reasons for closure include financial problems due to inadequate working capital, insufficient cash flow, increase in cost of product, squeezed profit margin, stressed assets etc," Minister of State for Textiles Ajay Tamta said in a written reply to the Lok Sabha on Thursday.
He said the ministry has no scheme for providing finance and technical support for the revival of closed mills.
These 17 mills were present in eight states including six in Tamil Nadu, three each in Andhra Pradesh and Karnataka and one each in Telangana, Haryana, Maharashtra, Rajasthan and Uttar Pradesh.
At present, there are 1,420 cotton/man-made fibre textile mills (non-SSI), including mills of national textile corporation, operating in the country.
Replying to a separate question, Tamta said the Department of Agriculture is implementing Cotton Development Programme with focus on cropping system approach under National Food Security Mission in 15 major cotton growing states.