role of maharashtra government

Chapter_8

ROLE OF MAHARASHTRA

GOVERNMENT

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Maharashtra has played an important role in our nation building. Many

prominent personalities from Maharashtra have an important share in progress and

development of the country. In respect of agriculture and industries, Maharashtra is

an advanced State in India. As far as the industries of Maharashtra are concerned

they got leading position in the country. Though the state of Maharashtra was

formed on 1st May 1960, it made a rapid progress in the industrial field.

POWERLOOM INDUSTRY IN MAHARASHTRA:

The Fact Finding Committee has pointed out that there were 15000

powerlooms in 1942 in India. The main centres of powerloom are Mumbai,

Ichalkaranji, Sholapur, Malegaon, Bhiwandi and Dhule. In 1941 Mumbai had

almost 55% of the total powerlooms in the country. 1

The table shows the leading position of Maharashtra compared to other State

in the country in respect of powerloom industry.

Table No. 8.1

Sr.

No.

States Total No. of

Powerlooms in lacks

Cotton powerlooms

in lacks

1 Andhra Pradesh 0.15 0.09

2 Assam 0.12 0.02

3 Bihar 0.07 0.06

4 Gujrat 0.92 0.23

5 Haryana 0.02 0.01

6 Karnataka 0.34 0.12

7 Kerala 0.06 0.05

8 Madhya Pradesh 0.16 0.13

9 Maharashtra 2.26 1.76

10 Orrisa 0.04 0.04

11 Punjab 0.22 0.05

12 Rajasthan 0.08 0.07

13 Tamil Nadu 0.93 0.69

14 Uttar Pradesh 0.24 0.19

15 West Bengal 0.15 0.13

16 Others states 0.05 0.03

17 Union Territories 5.71 3.67

GROWTH OF POWERLOOM INDUSTRY IN MAHARASHTRA

Bombay, Bhiwandi, Malegaon, Dhule, Ichalkaranji and Sholapur are the

main centres of powerloom industry in Maharashtra State. All these centres have

speciality in the pattern of weaving and are known for their variety of cloths.

Ichalkaranji is famous for its superfine Dhoties and multicolour sarees that is

called ‘patal’. The powerloom of Sholapur are engaged in manufacturing Jacquard

Chadders and towels that earn handsome foreign exchange for the country.

Malegaon and Dhule are known for coloured sarees with silk and Zari borders.

Irkal Zar-Zamin, Apsara, Mangla, and Boutiqe are some of the famous patterns of

sarees. In addition to it, grey cloth is another product of the centre. Bombay has got

leading place in textile industry. All types of cloth, such as long cloth, grey cloth,

suiting, shirting, printed materials, dhoties and silk sarees are some important

products of Bombay Textile Industry.

IMPORTANCE OF BOMBAY:

Earlier it is mentioned that the textile industries are established near the

cotton growing areas or near a port which has the facility of export and import.

After the First World War the textile industry was mainly concentrated in Bombay

due to the following reasons;

1. Humid climate of Bombay is suitable for the cotton spinning.

2. Facility of transport.

3. Easy availability of funds.

4. Provision of raw material.

5. Advertising facility.

6. Import and export facility.

7. Supply of electricity-and water.

8. Banking facility.

9. Cheap and skillful labourers.

10. Connected to all big cities of India by railways, roads and airways.

11. Head office of Textile Commissioner.

12. International city due to airport and volume of commerce.

13. Main centre of mill industries in the textile field.

14. Being the capital of Maharashtra.

15. Facilities of processing, sizing, printing, spinning and dyeing etc.

OTHER POWERLOOM CENTRES IN MAHARASHTRA

Apart from Mumbai there are some other important powerloom centers also

in Maharashtra. They are Bhiwandi, Malegaon, Ichalkaranji, Dhule and Sholapur.

Bhiwandi

Bhiwandi got more importance in the textile industry than other centres of

powerloom due to its proximity to Bombay. Bhiwandi has all the facilities that are

available in Bombay. More than one lakh powerlooms are running there. The

powerloom industry got rapid growth and expansion due to financial assistance and

support of mill owners from Bombay. One more reason is that after 1980 some

strikes were staged in Mumbai by mill labourers led by eminent leader Datta

Samant. Nearly 13 mills were locked due to insufficient capital and strikes. Lacs of

labourers became jobless. The mill owners turned towards Bhiwandi by supplying

sized beams and yarns and encouraged the setting of powerlooms. In return the

mill owners received prepared cloth that are called as ‘Master Weaver’. 60%

powerlooms are working as master weavers. At present suiting and shirting are

common products. Now a days the famous powerloom centre is observing severe

crisis of electricity supply. The charges are increased from Rs.300/- to Rs.1120/-

per powerloom by the Government of Maharashtra which is unbearable not only

for the powerloom owners from Bhiwandi but also for other centres. Due to the

crisis 50% powerloom units are locked.

Ichalkaranji:

Ichalkaranji is one of the eminent powerloom centres in southern

Maharashtra. The powerloom industry started here in 1904. The speciality of this

centre is the product of multi coloured Patal sarees -made from imported yarn.

After 1956, the weavers of Ichalkaranji shifted their production to grey cloth in

fine and superfine dhoties and mulls. According to the changing time and fashion,

the weavers are on the path of modernization of powerloom.

Sholapur:

Sholapur is situated in the southern Maharashtra. Sholapur is such a centre

where mills, handlooms and powerlooms have developed side by side. In the

beginning the handloom was providing the local needs. After the First World War

a mill was established in year 1950-55. The weavers of Sholapur purchased those

outdated looms and set up their own looms. At present one lakh powerlooms are

working there. They are busy in manufacturing jacquard chadders and towels.

These products have great demand in the country and are also exported to African

countries and thus, earn foreign exchange.

Dhule:

Dhule is situated on Bombay Agra road (NH3) to the east of Malegaon, in

Maharashtra, at a distance of 55 kms. It is also known for its coloured sarees as

Malegaon. At present there are 20000 powerlooms manufacturing coloured sarees

and-grey cloth of cotton and polyester.

All the powerloom centers in Maharashtra are facing the crisis due to the

increased rates of electricity. Deputation and representations are sent to the

Government in order to reduce it.

POLICY OF MAHARASHTRA GOVERNMENT

As far as ‘The textile policy’ is concerned it is the subject of the Union

Government of India. The State Governments have to look after and implement the

policies on behalf of the Central Government. Hence the Government of

Maharashtra has no power to form or change the policy regarding the textile

industry. The Maharashtra Government controls the related matters such as growth

of cotton, production supply of yarn, production of cloth and marketing etc. As per

the guidelines of the Central Government and its policy the Government of

Maharashtra implements it in the State. In respect of powerloom industry, the role

of Maharashtra Government is not favourable. The Central Government has always

favoured the mill and handloom owners, not different is the approach of, the

Government of Maharashtra. In the last fifty years several committees were

appointed regarding the powerloom industry by the Government of India. Kanungo

Committee 1942, Ashok Mehta Committee 1964, Shivaraman Committee 1974,

studied the powerloom industry. Among them only the Ashok Mehta Committee

encouraged the powerloom sector. He also recommended to give powerlooms, its

social status. 2

In the following lines, shall be studied the steps taken by the Government of

Maharashtra in respect of powerloom industry and its effects especially in

Malegaon.

a) Conversion Scheme of Handloom to powerloom:

According to the Kanungo Committee 1942, the central government

introduced the conversion scheme of handloom to powerloom in the Co-operative

sector. It recommended 35000 powerlooms only the following conditions.

(i) The allotment of looms would be on Co-operative basis only.

(ii) Powerlooms should be housed in weaver's cottage by themselves.

(iii) Other powerloom co-operative societies may be formed.

(iv) The size of powerloom unit should be of 10 looms.

(v) Powerloom units should be located in rural areas. The 30,000 population

or less shall be considered rural areas.

(vi) Only one powerloom to each weaver should be allotted.

(vii) Powerlooms under this Scheme are meant exclusively for production of

cotton cloth. 3

For the completion of this scheme a loom upto 87.50% as a share capital and

Rs. 100 as a membership fees for the co-operative societies was provided. Besides

the cent percent loan, for the cost of powerloom with motor, other expenses should

be 50% as grants and 50% as loan. Rs. 500 was also sanctioned as a working

capital.

The scheme failed in Maharashtra due to shortage of working capital. There

were many difficulties such as delay in supply of powerloom electricity etc. were

the causes for the failure of the scheme. In rural areas electricity was not available.

(b) Maharashtra Textile Corporation (MTC)

The Government of Maharashtra established “Maharashtra Textile

Corporation” in 1966 in order to control the sick mills due to insufficient capital.

The sick mills were given under the management of MTC, according to Industrial

Act 1951, sick Textiles undertaking Act 1972. Under the custody of various acts,

such sick mills are running under the management of MTC. For the progress and

development technicians and intelligent officers were appointed. For the sufficient

production emphasis was on the modernizations of the mills. Instead of labour

unions, labourers were given representations on the managing board. There were

45 mills in 1974 under the custody of MTC. 4

(c) Powerloom Advisory Board (1968)

The powerloom industry was always in the crisis due to unavailability of

yarn, dearness of so called yarn, electricity crisis and the policies of the

Government. Taking there into consideration the MLA Shri Nihal Ahmed raised

the question in the Assembly of Maharashtra. The grievances of powerloom

industry were placed in the Assembly. To solve the problems and grievances of

powerloom industry “Powerloom Advisory Board” was set up in 1968, consisting

of eleven members including Shri Nihal Ahmed. The main objective was to advise

the Government for the protection of powerloom industry from time to time.

(d) Govt. of Maharashtra & Coloured Sarees:

The handloom owners were always in the opposition of powerloom owners

due to the production of coloured sarees by the latter. Ichalkaranji, Malegaon and

Dhule are the main centres for coloured sarees. The lobby of handloom owners

from Nagpur and Vidharbha was stronger in the Parliament and Assembly as well

as outside of the legislature. The mill owners who are capitalist and exercise great

pressure on Government are also in the support of handloom owners. As a result

not only the Central Government but also the State Government was under

influence of handloom and mill sector. Due to the political pressure, the govt. is

not in favour of coloured sarees. The Government of Maharashtra also adopted the

policy for the restriction of coloured sarees on powerloom.

It is a fact that the coloured sarees of powerloom or their owners are not the

rivals of mill sector or handloom owners. There is no question of competition of

their products. Truly speaking, it is their misunderstanding that the powerloom

owners are their opponents.

(e) Press Note of Maharashtra Government:

In 1968, the pressure for ban on coloured saree was increased by handloom

owners and some Assembly Members. According to Ashok Mehta Committee

report of 1964. Shri Gulab Rao Ganachariya from Communist party insisted in the

House for the ban of coloured sarees, Helplessly the government of Maharashtra

issued an order according to the Cotton Textile Control Order of 1948 and

Fundamental Need Goods Act of 1955 to ban the coloured sarees on powerloom.

Further in the last month of 1968 a press-note was issued by the Government from

Nagpur to ban coloured sarees on powerlooms.

According to the press note of the Government the situation of powerloom

centres got worst. A panic spread out among the workers becoming jobless. In

course of time, a meeting of Textile Advisory Board was held on 28th August

1969, on the request of Mr. A. R. Bhatt the President of “Maharashtra Chamber of

Commerce” and Member of Ashok Mehta Committee of 1964. Mr. A. R. Bhatt

pleaded that, due to ban of coloured sarees on powerloom, thousands of

powerloom workers would become jobless. To avoid the problems of

unemployment, the Government was running the mills in loss. In this

circumstance, it would not be better to ban the coloured sarees on powerlooms.

Taking into consideration the seriousness of the matter and protest from centre of

coloured sarees, the matter was withheld for some days. 6

Due to pressure upon the Government from Comrade Bardhan (MLA) of

"Bunkar Sena" Hafiz Abdul Shakoor and Navendra Devghare, the Government

was puzzled. 7

(f) Tidke Committee:

Narendra Tidke, the Minister of Rural Development reported that, for the

progress and development it was necessary to ban the coloured sarees on

powerlooms immediately. In his report, it was disclosed that, out of one lakh fifty

thousand handlooms, 90,000 are out of co-operative movement. The cloth

production of handloom is of worth Rs. 32 crores and 10 lakh people are living on

it. 8 Anyway, whenever the pressure or political influence increased,

the Government order was released for ban of coloured sarees. The lobby of

handloom was satisfied. During the election the Government became passive

regarding the matter. It was just like the game of hide and seek between the

Government, powerloom and handloom sector.

(g) Powerloom Corporation 1973: 9

In 1973, a state level Powerloom Corporation was set up by the Government

of Maharashtra in order to provide relief to the weavers from costly yarn and cloth

traders as well as to enable them to earn something by their hard work.

The main objective of corporation was to supply yarn to weavers and

purchase their products and sell them in Bombay after processing. It was intended

to get rid of the commission agents brokers, yarn merchants, cloth traders and

middle men and exploitation. The scheme was popular within a short period. As a

result, there was tough competition in the cloth market. There was no option for

the cloth traders and master weavers but to increase the wages paid to weavers.

The scheme was lingered due to competition, which put the corporation in heavy

loss. Hence there was no option but to stop the functioning of corporation within

four years from its beginning. The excellent opportunity for the powerloom

weavers of freeing themselves from the hands of master weavers was completely

lost. The Government also didn't find out the defect and causes of failure of

scheme.

Hence it is the need of time to resort the some production, programme for

the powerloom weavers in a suitable manner.

(h) Maharashtra Industrial Development Corporation (MIDC)

For the rapid growth and development of industries in Maharashtra

particularly in developing areas, the Government of Maharashtra established

MIDC in August 1962. It was specially for the small scale sector in the state. 10

The MIDC was established in Malegaon at Daregaon beyond Daregaon hills

near Saena Budruka at a distance of one kilometer from Malegaon to the eastern

part of Malegaon. The powerloom industry is a home industry and all the facilities

are available here in the city itself. It is not suitable for the small powerloom units

to go so long to MIDC area. Hence the powerloom owners did not respond to the

scheme. The Government did not provide the facilities of processing, sizing,

dyeing, printing etc. in the area.

Undoubtedly, Maharashtra is the leading State in the industrial field of India.

But the facilities provided to other industries, are not given to powerloom industry.

The powerloom industry was not even encouraged by the Government. The

powerloom industry never got the sympathy of any Government at any time. After

a deep study and observation of activities of the politicians and Government

officials, it can be concluded. That communalism plays a bad role in the matter. It

is because whole powerloom industry is dominated by the Muslims at all the

powerloom centres. The progress of powerloom industry means the progress of

Muslims community.

(i) Co-Operative Sector:

In the co-operative movement, Maharashtra State has a unique place in

India. Through the co-operation movement, the various industries particularly the

Sugar industry progressed by leaps and bounds. By the co-operative sugar factories

the rural areas developed very much. With the help of co-operative societies in

different walks of life, the small scale industries developed and provided

opportunity of new employment in the State. 11

As far as the powerloom industry of Malegaon is concerned in the co-

operative movement, it did not make much progress. There are several powerloom

cooperative societies at present in Malegaon. These societies are only on paper.

Particularly they are passive except to get the benefit from the Government from

time to time.

Generally, the powerloom owners are not interested in such societies

because of "interest'. Being the Muslims, interest is disliked according to their

“Shariat”. That's the reason the co-operative movement, particularly in Malegaon,

did not flourish as in other parts of Maharashtra.

ELECTRICITY :

In this computerised era, the powerloom industry can not be imagined

without electricity. Now-a-day’s electricity has become a basic need of life. The

electricity has got so much importance in our society that we can not live without

it.

For the Malegaon powerloom industry the electricity was available only in

1938. More production, easy working and less effort, heavy profit results in the

growth of powerloom industry in Malegaon. At its primary stage “The

Amalgamated Electricity” encouraged the handloom weavers by providing several

facilities such as free installation, free of charge service, exemption in deposit and

payment, etc. Taking into consideration the importance and advantages of

electricity the installation increased gradually. With the expansion and growth of

electricity the company imposed their rules and regulations over the powerloom

owners. Later on the endless harassment of powerloom owners began. The

company was under the British Govt. After independence, the Bombay State, then

after the establishment of Maharashtra (1960) government, the electricity is

supplied by (M.S.E.B.). The administration of electricity supply was never

praiseworthy under any agency. Irregularity, discontinuation in supply of

electricity, repeated increment in charges etc. are the common practice of

electricity.

In its 37 years service, The Amalgamated Electric Company was never

crucial for the powerloom owners. No powerloom owner was happy with it. The

government was a mute watcher and helpless. Due to ill administration, corruption

and indiscipline in supply of electricity the powerloom industry suffered a lot.

(a) Electric Charges :

The factor is ever increasing electric charges in the history of powerloom

industry in Malegaon. Besides the budget, sometimes it is increased two or three

times in a year and that is unbearable for powerloom owners. Due to the increment

in costing of cloth and production were badly affected. For the removal of

increment, movements were raised, time, money & energy were wasted. In such

circumstances the political parties and their leaders took advantage of situation.

Thus the chain of action and reaction is going a since the establishment of electric

company.

The electric charges increased gradually as given below. 12

Table No. 8.2

1938 The electricity was provided almost free of cost.

1959 0.17 N. P. per Unit

1962 0.03 N.P. per Unit Electric Tax

1963 0.44 to 0.50 N. P. per Unit

1964 Increased by 0. 19 to 0.22 N. P. per Unit

1969 Increased by 0. 18 to 0.31 N. P. per Unit

1985 MSEB 0.35 to 0.70 paise increased up to 120 unit 0.58 paise

increased to 0.88 paise.

120 unit and above 0.60 paise increased by 0.98 paise.

1997 Fixed rate Rs. 120.00 per powerloom

1998 Fixed increased to Rs. 180.00 per powerloom

2000 Proposed Rs. 300.00 per Powerloom.

In near future the proposal of electric charges per powerloom will be almost

Rs. 700/per month. It is because of the Enron Project at Dhabhol (Ratnagiri) An

American Company, that will supply the electricity at a rate of Rs. 4.60 per unit. At

such a horrible rate not only the powerloom industry but also other industries will

be locked up.

A summary of H. T. Tariff for the year 2000-2001 is given below.

(b) Maharashtra State Electricity Board (MSEB) :

In June 1963, when electric charges were from 0.44 to 0.50 paise by the

Amalgated Electric Company (AEC) the power consumers association protested

against it and demanded the electricity supply from “Koena Project" of the

Maharashtra government. It is because the electricity there is cheaper than AEC.

The Maharashtra government was politically pressurized to take over the charge

from AEC. It was pointed out that 4000 powerlooms were running on electricity

whereas 150000 were working on diesel engines, as electricity was costly. In

respect of thermal energy an enquiry was made by the M.L.A. Shri Nehal Ahmed

in Maharashtra Assembly. But it was seemed the government was not interested in

the matter. The government failed to keep promises made by it in 1965, 1966, 1967

and 1968 about supply of Thermal Electricity to Malegaon.

After several agitations and strikes the government of Maharashtra started to

supply Thermal Electricity in Malegaon on 22nd

Aug. 1969 at the old rate. It was

protested by consumers and they opposed to pay the bill.

In March 1970, a new condition was imposed by the government that the

consumers must produce a certificate of small scale industries registration to install

the fresh motive power. Due to new condition the fresh applications were not

eligible without certificate and such applications were not accepted by the

company.

The agitation was continued to reduce the electric charges of thermal

electricity. Helplessly, the government reduced a minor charge in the rate.

According to new rate, for the first 150 units, charge will be 0.19 paise per unit for

motive power. It was still more than the M.S.E.B. rate. Now the rate enforced

from. 1st April 1971. It was again not accepted by consumers.

In course of time due to the undertaking of electric supply by the AEC come to an

end. The company was trying to continue their services.

1976-77 was the worst period in the history of electric supply in Malegaon

Electricity was supplied only for 10 to 12 hrs. a day that resulted in the low

production of cloth the small powerloom owners having up to 6 to 8 loom locked

up their units for not having an alternative to run the looms. As a result most of the

labourers became jobless. Such labourers migrated to Surat, Bhiwandi, and

Ahmedabad to earn their livelihood.

The situation was so critical that government, municipal council and

political parties couldn't do anything. The powerloom owners as well as labour

organizations were helpless.

There was no solution. It was a great shock to Malegaon Powerloom industry.

Inspite of this great crisis the powerloom owners neither united nor tried to find out

solution for the future. This crisis provided a golden chance to big powerloom

owners to manufacture their product with diesel engine. They earned handsome

money by selling their product on higher margin due to short supply. So they didn't

want to solve the problem.

Role of M.S.E.B. :

From 1938 to 1975, a span of 37 years, the A.E.C. was sole enterprise for

supply of electricity in Malegaon. The service of A.E.C. was never in the favour of

powerloom industry. After the establishment of Maharashtra State the government

encouraged the co-operative movement especially in the industrial development.

As a result the private companies were discouraged and their services were taken

over the govt. Hence MSEB took place of AEC in supply of electricity to

Malegaon in 1975. The people of Malegaon took breath of relief that they got rid

of AEC and thought MSEB will do something good for their industry.

But it proved to be a dream only. When working of MSEB came into

practice, it was disclosed that previous supplier was better than the present one.

The disabilities of MSEB are given below which are observed over 25 years

service in supply of electricity to Malegaon. 13

i) Malpractice is a sin of society. In MSEB, without taking bribe the

technicians do not remove the faults of the individual consumers.

Otherwise the faults are repaired after a day or two when complaint is

lodged in the office.

ii) Repeated discontinuation and. irregular supply of electricity is common

practice of MSEB.

iii) Several bill collection offices were there for the convenience of the

consumers. MSEB stopped the practice and started collection through the

banks on contract basis by paying commission. At present the bill is

collected by NDCC Bank. It is the wastage of time and money.

iv) The head office was in the heart of the city at Old Agra Road, But MSEB

transferred its office in Moti Bhawan behind the State bank. For a minor

and casual mistake or work the consumers have to suffer alot.

v) Meter reading, calculation, distribution and collection of bill were done

monthly. The system was easier, suitable and convenient for the small

powerloom owners as well as labourer community and domestic users,

On the contrary, the MSEB adopted the policy of two months billing. A

long and lengthy procedure was followed which created several

problems.

vi) MSEB never supplies voltage of 460 volts. The low voltage of 200 to 300

damages the powerloom motors, tube lights, T. V. Tubes Computers, etc.

The low voltage creates several problems in the city.

vii) Wrong reading of meter and miscalculation of charges is a common

practice. A poor hutment was charged Rs. 70000/- for two months. In

such cases no complaint could be filed taken by the authorities. They tell,

it is a computer mistake and that’s all. His complaint will be filed only

after payment. How is it possible a hutment dweller to pay such a huge

amount?

viii) In the name of load shading the electricity is discontinued every Friday

from 6 a.m. to 10 p.m. since March 2000. The discontinuation of 16

hours had created several problems.

ix) In discontinuation of supply of the electricity communal attitude played a

crucial role in the workers of MSEB. In Sangmeshwar, Sapati Bazar and

Camp area electricity is supplied throughout the day.

x) The farmers are provided electricity at concessional rate. Inspite of it, the

farmers do not pay their bills. At any natural disasters such as heavy rain,

no rain, flood, bad weather, cyclones and crop ruin the bills are called

off. In the name of poor farmer and agriculture. The cloth production is

one of the basic needs but powerloom owners are charged double and the

bill collected at will, otherwise the supply is disconnected. Due to the

dual policy of the government the electricity board is always in loss of

crores of rupees.

In March 1999, the government of Maharashtra announced several facilities

to the farmers. Their 50% arrears were called off if they paid their bills. From 1st

April 1999. The farmers will get electricity at half the rate. The power and energy

minister disclosed that the bill to be received is 6 Arabs 50 crores rupees from 11

lakh farmers. The farmers will get facility according to the table given below. 14

Table No. 8.3

No. Particulars Old Rate Proposed Rate

1

2

3

4

3 Horse power motor pump

3 H.P. to 5 H.P.

7.5 H.P. to Motor pump

More than 7.5 H.P.

Rs. 500

Rs. 500

Rs. 750

Rs. 1000

Rs. 250

Rs. 400

Rs. 600

Rs. 7000

Despite of 50% concession, if the farmers do not pay their bills still their

supply is continued.

xi) The government was advised by Electricity commission in respect of

overtime duty of the employees. In all, one lakh 11 thousand employees

are working in the state. These employees receive 80 crore rupees as

overtime. The amount is more than any other state of the country. 13% of

the total amount is spent on their payments and other facilities. It is

because the employees do not work during duty period and try to work

overtime to get the excess amount of payment.

xii) A new format was enforced over domestic, non-domestic and industrial

users of electricity in the name of Security Deposit. Every consumer will

have to pay an average amount of three months bill as a security deposit.

The three month’s bill will remain with MSEB as S.D. Ten years ago it

was only Rs. 50. Then it increased up to Rs. 300 per horse power. Such

steps prove the bankruptcy of MSEB. The loss of MSEB is collected by

various means. In this way the powerloom industry drags itself.

Obviously, the Maharashtra government is like an enemy of powerloom

industry. 15

Source : Shamnama Daily, Malegaon dt. 10-3-99

Electric Arrears on Powerloom Industry in MALEGAON : 16

Due to continuous crisis at all powerloom centres of Maharashtra, the

government decided to give up 55% in electric bills of powerloom owners. But the

matter became controversial between ruling parties and opposition (BJP, Shivsena)

parties. The opposition parties and MSEB severely opposed the decision. It is

considered more communal than political. It is because in March 1999 the

exemption of 50% proposal was not accepted by the opposition and now the ruling

party. It was proposed by then ruling party Shivsena, B.J.P. government. So, it is

not possible for them to accept the proposal for powerloom owners who are

generally Muslims. Almost 80% Muslims are related to powerloom industry. The

matter is of Rs. 80 crore, 55% exemption means Rs. 45 crores exemption. After the

independence, the govt. of Maharashtra exempted the farmers several times, if the

amount had been received, Maharashtra state would have existed on the map.

Almost the same amount has been received by the corrupt and dishonest

employees and officers of MSEB as bribe. Recently, two years ago, the communal

leaders left out 200 crore rupees of electric bill of a co-operative Sugar factory in

Dist. Ahmednagar. Due to this exemption the chief of that sugar factory resigned

from congress party and joined Shivsena.

It is a significant example of immorality of politicians of India. To

strengthen their political power they destroy the nation.

In May 1999, the minister of power and energy disclosed that, the electricity

is stolen by the four lakh farmers with “Ankdi” Due to this ill practice transformers

are destroyed. It was also accepted that it is very difficult to control it. It is a fact

that 60% farmers use the electric by stealing or in illegal manner.

To collect the bills of Rs. 1600 crores from farmers the Maharashtra

government wasted of Rs. 50 crores on campaign of advertisement. The scheme

has failed badly.

The above mentioned facts are the proof of Maharashtra governments’ dual

policy. It seemed the govt. is only for farmers. The farmers are exempted from

paying bills, inspite of stealing electricity, no action is taken against them. Despite

of non-payment, their electricity supply is continued. Besides these, they are

provided several facilities and given preference in all walks of life by the govt. On

other hand as regards powerloom industry, the behaviour of Maharashtra govt. is

just like step mother. Whenever any step is taken by government, the communal

minded politicians and employees from MSEB oppose it severely.

Ashok Basak, the chairman of MSEB, opposed the 55% exemption of

powerloom owners, though it is accepted by him that the record of powerloom

owners from Malegaon is better than other powerloom centres. Some more facts

and figures are given below provided by the head of MSEB of Nashik Division.

The facts are given as on 1st January 2000.

Table No. 8.4

i)

ii)

iii)

iv)

v)

No. of powerlooms

No. of powerloom sheds

bills are given by meter system on which 10,436

K.V. load is supplied.

In Malegaon the electric load is supplied for

powerlooms

Electric bill due on 1st January 2000 in Electric

bill due only on powerloom.

66,541

5,595

1,292

48380 K.V.

13 crore 60 lakh Rs.

6 crores 15 lakh Rs.

vi) Electric bill due only on powerloom Out of 6 crores 15 lakh rupees, 2

crore 40 lakh rupees are blocked due to court matter. The original amount

to be received is only 3 crore 75 lakhs rupees from 519 powerloom

owners.

vii) No. of cases are in court. 438

viii) Most of the matters are raided of flying squad, overload wrong meter

reading and wrong calculation in the bill.

ix) Monthly income from Malegaon powerloom owners is Rs. One crore 12

lakh rupees out of which 80% is permanent.

x) Bills are due on business organizations, shops offices and etc. are 2.50

crore rupees.

xi) Due to the wrong entry, penalty of overload, short duration in payment,

improper facilities in banks etc. some persons make delay in the

payment.

xii) Domestic bill is due 4.5 crore rupees. Taking into consideration the

figures and facts in the 55% exemption (Proposed) the advantage is zero

for powerloom owners of Malegaon. 17

Source : Shamnama Daily, Malegaon dt. 10/2/2000

It is assumed that the MSEB has adopted the policy to give the concession

up to September end in the electric bill exemption scheme. The officers from

MSEB put pressure and gave warning for discontinuation of electricity which

resulted in powerloom owners selling their lands and valuable and properties to

pay their bills.

A cruel Step of MSEB (2000) :

The powerloom owners from all the centres of Maharashtra such as

Ichalkaranji, Dhule, Solapur, Bhiwandi and Malegaon were protesting against the

fixed rate of Rs. 180/- per loom per month. Meanwhile the MSEB imposed the

new tariff of electric charges in the state from June 2000. In all the categories the

charges were doubled. The charges to be received will be 320 rupees for general

motive power while the flat rate of powerloom will be 300/- rupees per month. The

domestic non-domestic and agricultural categories were also subjected to the new

tariff of electric charges.

The summary of HT tariff for 2000 is given below which has came into

practice from 1st June 2000.

18

Summary of LT Tariff for the year 2000-01

Table No. 8.5

Proposed Category of

Consumers

Demand Charge

(Rs/KVA/month) Rs/HP/month

Energy

Charge

Ps/U

Domestic (LD 1)

0 – 30 Units Rs. 20 per service connection for

single phase.

Rs. 50 per service connection for

three phase.

Additional Fixed charges of Rs. 50

per 10 KW.

Load of part thereof above 10 KW

load shall be payable.

75

31 – 100 Units 250

101 – 300 Units 300

Above 300 Units 460

Non Domestic (LD 2)

0 – 100 Units Rs. 50 per service connection for

single phase.

Rs. 100 per service connection for

three phase.

Additional Fixed charges of Rs. 100

per 10 KW.

Load of part thereof above 10 KW

load shall be payable.

250

101 – 200 Units 460

Above 200 Units 600

General Motive Power (LTP-G)

0 – 300 Units Rs. 60 per HP per month.

Optional MD based tariff will be

available at

Rs. 220 KV per month

210

301 – 1000 Units 280

1001 – 15000 Units 320

15001 – above Units

(only balance units) 160

Powerloom Flat Rate 300 0

Public Water Supply

Urban P. W. Schemes

For Connected Load 0 - ???

HP 40 200

For Connected Load 0 - ???

HP 40 300

Rural P. W. Schemes

Flat Rate

Tariff(RS/HP/month)

Grampanchayat 88 0

‘C’ class Municipal

Council 116 0

Metered Tariff 20 100

Summary of HT Tariff for the year 2000-01 18

Table No. 8.6

Proposed Category of Consumers

Demand Charge

(Rs/KVA/month

)

Rs/HP/month

Energy

Charge

Ps/U

HTP – I (Industrial – BMR/PMR)

Base Tariff 300 335

TOD Tariff

2200 hrs. – 0600 hrs. 0 50

0600 hrs. – 0900 hrs. 0 0

0900 hrs. – 1200 hrs. 0 30

1200 hrs. – 1800 hrs. 0 0

1800 hrs. – 2200 hrs. 0 60

HTP – II (Industrial – Other) Base

Tariff 280 325

TOD Tariff

2200 hrs. – 0600 hrs. 0 50

0600 hrs. – 0900 hrs. 0 0

0900 hrs. – 1200 hrs. 0 30

1200 hrs. – 1800 hrs. 0 0

1800 hrs. – 2200 hrs. 0 60

HTP – III (PWW-BMR/PMR) 300 350

HTP – IV (PWW-Others) 220 320

HTP – V (Railway Traction) 0 420

HTP – VI

Residential Complex 180 200

Commercial Complex 180 300

HTP VII (Agricultural)

Flat Rate Tariff (Rs/HP/month)*** 117 0

Metered Tariff 20 120

HTP VIII Poultry Layers & Boilers 180 120

HTP IX (???) 600 330

SP – I Agri (HT/LT) High Tech, Cold

Storage 180 200

Mula Pravara Electric Co-op. Soc. 0 120

Inter State Sale 0 260

Note : (*** : Flat rate tariff shall be applicable till the time ?????? are installed.

FCA shall be applicable to all categories of consumers. The

methodology for charging FCA shall be determined by the Commission on a

quarterly basis.)

(Supplied by Shri Mujeeb Momin, member of all India Textile Board.)

Public Reactions :

Really speaking it is a cruel step taken towards powerloom owners in

Maharashtra. It is impossible for owners to pay of fixed rate of Rupees 180/-. The

powerloom industry was already in crisis due to costly yarn and improper supply

of electricity. Most of the powerloom were locked in Bhiwandi. Few cases of

suicide of powerloom owners occurred in Bhiwandi and Ichalkaranji due to this

crisis.

At first, the powerloom owners from Ichalkaranji opposed the proposal of

new tariff. Then the owners from Bhiwandi came into arena. In the second week of

June, the powerloom owners of Malegaon and Dhule opposed it. The Powerloom

Protection Committee of Malegaon called a meeting in order to protest against the

tariff unitedly (11 -6-2000). Not only powerloom owners, but the people from all

walks of life also responded to the call. In the meeting it was analyzed by Shri

Nehal Ahmed that, the government of Maharashtra had ceased the concession to

the powerloom owners since 1992. Due to this policy, the powerloom industry

came to a stage of locked up powerlooms. The National Region Company pays the

power bill of 1.40 crore monthly and did not oppose the tariff because it earns

profit. On the contrary the powerloom industry is already in loss, hence it is not

possible for it to bear such heavy burden of power tariff of 320 rupees per

powerloom monthly. The board was formed by the government but the policy was

not formed. That is the reason, the Board imposed the tariff as per their will. At

present not only the powerloom owners but farmers and domestic users of

electricity also are in trouble. 19

Source : Awami Awaz Weekly, Maleaon dt. 16-6-2000)

The electricity board will be private and divided into three parts. As a result,

fifty thousands of employees will be jobless. It was shocking announcement by the

chief minister of Maharashtra for the employees of MSEB. The powerloom owners

of Dhule, Bhiwandi and Malegaon are on the way of movement against 320 rupees

per loom per month. In Malegaon it was decided, instead of paying bill, it will be

returned with application. 20

Source : Awami Awaz Weekly, Maleaon dt.23-6-2000

In protest of increased tariff "Malegaon Band" was observed on 10th

July

2000 by the people. The communal minded parties opposed it. Actually it was not

the problem of powerloom only but also for all the citizens of Malegaon. That's

why one day earlier in a public meeting at Quidwai Road, nearly 70 thousand

people were present. At all events the protest is remarkable and historical as well.

On the other hand, the sitting MLA Shaikh Rasheed of Malegaon formed

powerloom Udyoug Bachao Samiti, he opposed the movement of powerloom

action committee only because it was laid by Nehal Ahmed former MLA of Janata

Dal (S). Thus, the matter was divided. But the people did not respond/to Udyog

Sameeti. It was tried to get the political advantage by the sitting MLA of Congress.

After several agitations, processions and public meetings and union of 12

MLAs from all powerloom centres and protest in the Assembly that the chief

minister took a decision in the matter helplessly. The following decisions were

taken in the meeting of chief minister with MLAs.

i) The decision of 55% concession on 13th January 2000 will be continued.

ii) The remaining amount of 45% will be paid in three installments.

iii) 30 rupees per powerloom per month shall be received which are not

working.

iv) The charges of capacitor shall not be taken.

v) Over load penalty shall not be charged.

In respect of above decision it was a stay on the “regulatory commission”.

The government was on the path of court against the commission too. It is because

almost 32 petitions were already admitted in the High Court against Regulatory

Commission, by various organizations of powerloom centres. 21


Strike of Electric Employees :

The problem of increased rate by Regulatory Commission was a burning

matter. In course of time the fourteen employees unions of MSEB from all over

Maharashtra gave a notice of unlimited strike on the subject of division of the

electricity board and privatization of electricity in the state. Almost one lakh eleven

thousand employees took part in the strike from 25th

July 2000. Due to this strike

the electricity problem has turned so serious that what will happen the next

moment in the state, can not be predicted. The government of Maharashtra was

helpless. 22


Corporation OR District :

The government of Maharashtra never considered the matter of promotion of

corporation or district in respect of Malegaon, seriously and honestly. Several

governments came in power and have gone but the dream of corporation or district

of Malegaon did not -come true. Either it is Congress, Janata Dal, Shive Sena, BJP

or NCP all are in the, same lake of dirty politics. The issue of promotion of

corporation or district is a purely political matter. Their intension is not progress

and development of the powerloom city of Malegaon. The main object is there to

get advantage of the occasion. Because of political struggle the gradation of

Malegaon has went back. Being the majority of Muslim community is another

reason in the controversy.

Corporation :

Before May 1999 an announcement of corporation for Malegaon was made

several times. Later on under the pressure of communal minded organizations and

opponents of powerloom industry of Malegaon the government of Maharashtra

took a decision to declare

Malegaon as corporation. It would be 16th corporation of the state. Sathe

Commission was nominated at-the time of Nashik and Aurangabad. According to

the recommendation of Sathe Commission the villages which are within 7 km area

will be included in the Malegaon Corporation. Dayana, Tehre, Malda, Soyegaon,

Chandanpuri, Daregaon, Neelgaon, Bhaygaon and VazeerKheda will come in this

area. According to the report of the commission the proposed village under

Malegaon Corporation and their population are given bellow. 23

Table No. 8.7

No. Name of the Villages Population Distance from Malegaon in Km.

1 Daregaon 2152 4

2 Dyane 11,294 2

3 Chandanpuri 4612 5

4 Soygaon 10,633 2

5 Malda 1400 2

6 Tehre 1372 5

7 Neelgaon 1319 4

8 Bhayegaon 1778 2

9 Wazeer Kheda 2927 5

10 Dabhadi 18,352 11

Source : Proposed Malegaon Corporation - 26*

After the corporation, the following changes will come into begin:

1. There would be a mayor in place of president. Municipal Commissioner will

enjoy the maximum power than the mayor.

2. House tax, water tax, rent of Municipal properties and shopping centres,

town hall will be increased too much.

3. Octroi will be imposed again.

4. 80% salary is paid by the government of Maharashtra while the 20% by

Municipal Council to the teachers of Municipal School Board. After the

corporation this ratio would be 50:50.

5. Salaries and Allowances of municipal council will be paid by corporation.

6. All the facilities will be provided by the corporation, to the villages which

will be included in Malegaon Corporation area.

7. The house taxes will be increased in those villages.

8. Serious action will be taken against the encroachment and illegal

possessions.

It was only a proposal. Two years earlier the government had asked for the

opinion from municipal council for the corporation. On 27/7/1997, a meeting of

general board of municipal council had rejected the proposal unanimously,

(Shamnama 12/5/99) 24

The city Youth Congress did welcome the proposal but Janata Dal opposed

it severely. The same procedure was repeated by municipal council on 14/5/1999.

To oppose the proposal of corporation the President of Malegaon municipal

council admitted a writ petition in Bombay High court and got stay on the decision

of the government. Really it was a fovourable step for Malegaon powerloom

industry. Otherwise the income from Malegaon powerloom industry will be spent

on the villages. So also the octroi will crush the industry, Two years ago a writ was

also filed in the High Court, in which the govt. of Maharashtra then said that, the

govt. will not take decision of formation of corporation until the consultation with

Nehal Ahmed and Dr. N. Ray Shah (President of Janta Dal (S). But the govt. did

not keep the promise. The intension of the govt. is to increase the income. Besides,

after the inclusion of villages the population of Muslim majority will come into

minority. Then in corporation there will be majority of Hindus. But it was good for

Malegaon that the proposal did not come true, otherwise the powerloom industry

would have been ruined. 25

(Source : Awami Awaz Weekly, Malegaon dt.: 14/5/1999)

District:

It was a demand for a long period from the people of Malegaon, since 1981.

When the decision of corporation was taken by the govt. it was opposed and the

demand that Malegaon should be made a district, was put forth. The gradation as a

district would be better than the corporation. Because not only the city of

Malegaon but also the powerloom industry will get several facilities and will be

developed rapidly from time to-time the announcement of district for Malegaon

was done by the govt. but except the announcement nothing more happened about

formation of district for Malegaon.

In January 1999, it was announced by the govt. that the three new districts

will come in to existence i.e. Malegaon, Nandurbar, and Washim. But only

Nandurbar and Washim were given the grade of district and Malegaon was left out

for unknown reasons. But later on it was understood that the political leaders and

their parties of Kalwan, Baglan, Surgana and Peth opposed the proposal of district

of Malegaon. The people from these Taluka places do not like to be included in

Malegaon district. The political parties and MLAs from Kalwan severely opposed

and warned the govt. for agitation and movement.

The Adivasi development minister and Health Minister in Maharashtra

government who were from Kalwan constituency started a campaign for formation

of district to Kalwan instead of Malegaon. It was blamed that, Malegaon is centre

communal disturbances. Hence the people avoid going there. The rates of lands are

high comparing to Kalwan. These two ministers proposed Kalwan to be graded as

district instead of Malegaon.

Anyway the government of Maharashtra could not give Malegaon a district

because of which the people of neighbouring villages get their livelihood. The

powerloom industry of Malegaon has a lions share in the economy of Maharashtra

State, but the state does not provide any single encouraging support to the industry

of powerloom. In the agony of communal politicians the dream of district will not

come true in near future. The government of Maharashtra absolutely failed

regarding the matter of district of Malegaon. The communal minded persons never

like the progress of powerloom industry of Malegaon. It is because the progress of

powerloom will be the progress of Muslim community.

TRANSPORTATION :

Transportation is also an important factor in the progress and development

of industries. As far as the Malegaon powerloom industry is concerned this facility

is not adequate. Most of the yarn and cloth business is from Surat, Ahmedabad and

Bombay. Cotton yarn is brought from Southern part of India, while the man-made

fibres are brought from Surat, Bombay and Ahmedabad. Cloth is sold to Pali,

Balotra, Jetpur, Bombay and Ahmedabad.

Bombay-Agra Road is a busy road. But the govt. of Maharashtra does not

provide any alternative facility for quick delivery of goods as there it takes long

time due to heavy traffic. Traffic jam at Kasara Ghat is a usual practice due to

narrow road. Roads are damaged in every monsoon. Several potfulls are there on

the road, which are obstacles and cause delay in the traffic. The damage of lorry,

tyres and machinery is an extra burden for lorry owners. But the government of

Maharashtra has neglected this factor.

Similarly state highway from Malegaon to Surat and Ahmedabad has the'

same problem. It is to be mentioned here like the other difficulties because the

transportation is much more than the other places around.

53 years have passed from independence, neither the central govt. nor the

state felt the need of railway for Malegaon industry. Where there is no will, there is

no progress and work. In every general election the issue of Malegaon Nardana

railway is included by each political party. But after the election it is forgotten.

It seems each and every political party and their leaders have brutality with

Malegaon.

Inspite of providing clothing to the poor people of Maharashtra, providing

employment to the neighbouring villages, earning a handsome foreign exchange

for the country it doesn't become either corporation or district nor was the railway

line provided to Malegaon. On the contrary many other cities were given railway

and other modern facilities.

Financial Policy:

Financial support from government, semi-government, financial

organizations and other co-operative banks is an important factor in the progress

and development of an industry Fixed capital, Marketing capital, working capital

and capital for modernization are required in the industry. Anyway the capital

plays an eminent role in the industry. Financial support by the government of

Maharashtra it is negligible. All the industries were supported by finance and

encouraged and provided with every possible facility except the powerloom

industry particularly in Malegaon by government of Maharashtra.

Estimates Committee Report 1978 :

In March 1978, the 14th

report of Estimate Committee of the 6th Lok Sabha

was represented. The committee has given very useful information regarding

financial support, the planning and practical expenditure. 26

Table No. 8.8

No. Year Out lay

Rs. In Crores

Expenditure

Rs. In Crores

1 1st Five Year Plan Not indicated Not indicated

2 2nd

Five Year Plan 3.70 2.0

3 3rd


4 Three Annual Plans (1966-69) 1.66 0.47

5 4th


6 Annual Plan (1974-75) 0.73 0.28

7 Annual Plan (1975-76) 0.88 0.70

TOTAL 18.62 8.24

(Source : Shamnama Daily, Malegaon)

It was the responsibility of the state govt. to use the fund for the benefit of

powerloom industry. The govt. of Maharashtra did not utilize the fund sanctioned

by the central govt. for the development of the powerloom industry though it was

free to utilize the funds in anyway. But it was unfortunate for the powerloom

industry that the funds are provided but the state doesn't want to use it.

About the financial needs of powerloom industry the Estimate Committee

has stated that the regional financial corporation and the nationalized banks have

completely overlooked this problem. It is necessary to provide loans to powerloom

industry, 3% below the bank rate just as the handloom societies are getting it

today.

Regarding the matter, neither the government of Maharashtra nor the

political leaders took interest in the matter.

The role of Maharashtra govt. is not satisfactory as for as the financial

support to the powerloom industry is concerned. In fact the state govt. is also the

playing in the hands of mill owner & handloom sector.

Provision of Yarn :

Yarn is the primary need of the powerloom industry in Malegaon that is

almost entirely produced by the organized sector (mill sector). For the coloured

sarees and grey cloth, an adequate provision of yarn influences the prospect of the

textile mills and the powerloom and handloom industry. Cotton yarn, blended yarn

and 100% non cotton yarn are the three kinds. At present the cotton yarn and the

blended yarn are produced by the composite mills, spinning mills and the small

scale spinning mills,

Generally in Malegaon the 100% cotton yarn is used for the coloured sarees

of the count Nos. 60, 80, and 100 while the grey cloth cotton the count Nos. 34, 40

and 50 are used. This yarn is supplied by the co-operative mills of Maharashtra and

Tamil Nadu. The 100% non-cotton yarn is supplied by mill from Ahmedabad and

Bombay. The yarn is not made available directly by mills, but there are many

middlemen such as yarn traders, commission agents, brokers. On account of these

middlemen the powerloom owners suffer a lot. The most dangerous obstacle in the

progress of powerloom industry is that there is no provision of yarn at reasonable

rate. There is no guarantee of rates in the local market. The govt. of Maharashtra

has completely failed in controlling the rates of yarn. In the following lines a

detailed study has been undertaken about the role of govt. of Maharashtra in

respect of yarn provision to the powerloom industry particularly in Malegaon.

PRODUCTION OF YARN IN MAHARASHTRA :

According to the Fact Finding Committee the consumption of yarn

increased during the war period in 1939. The import of yarn was stopped. After the

independence the policy was adopted to provide the yarn on large scale to the

handloom and powerloom sector. Hence the new license were issued for the, and

capacity was increased by following spindles. At present the situation of spinning

and composite textile mills is as under as on March 1999 in Maharashtra state. 27

Table No. 8.9

Year No. of Spinning Composite Mills Installed Capacity

Spindles Rotors Looms

1989 43 79 5019 2756 66753

1999 124 77 5020 43044 36104

The number of spinning mills increased by 43 to 124 in 1999 while the

rotors increased from 2750 to 43044. Due to expansion of spinning mills the

production of yarn also increased in state.

At present the production of spun yarn is as follows in Maharashtra. 28

(000

kg)

Table No. 8.10

Yarn 1994-95 1995-96 1996-97 1997-98 1998-99

Cotton 247040 283743 319341 291802 268386

Blended Yarn 60144 63478 74993 81056 79038

100% Non Cotton 5418 12200 5073 4715 6977

All Yarns 312602 359421 399407 377573 354401

(Compendium P. 44 – 45 31*)

All types of yarn, comparing to 1994-95 the production increased too much

in 1998-99. Due to the wrong policy of the Maharashtra Government about supply

and export of cotton yarn, the handloom and powerloom sector do not get it

sufficient quantity as to their requirement. As a result the scarcity of yarn is created

which results in the hike of yarn prices. The scarcity and rising prices of yarn

create dilemma at powerloom centres in Maharashtra regarding Production,

availability, consumption and stock of cotton yarn in India.

Table No. 8.11

No

.

Particulars 1992

1993

1993

1994

1994

1995

1995

1996

1996

1997

1997

1998

1998

1999

( in Million Kg.)

1

2

3

4

5

Opening Stock

Production

Export

Domestic Availability(1+2-

3)

Consumption :

97

1509

128

1538

377

107

1697

179

1625

422

86

1696

229

1553

438

126

1894

263

1757

504

137

2148

465

1822

519

76

2213

485

1804

540

90

2022

487

1625

473

6

7

8

Handloom

Powerloom

Textile Mill & Other Uses

Total Consumption

Closing Stock (4-6)

822

322

1431

107

903

114

1539

88

834

1255

1427

128

929

185

1618

139

982

145

1746

78

975

199

1714

90

887

170

1530

95

(Compendium P.49 4/9/2000 32*) 29

The figures of export show that it was 128 million kg. in 1992-93. But it has

increased year by year upto 487 million kg. in 1998-99. It is four times higher to as

compared to 1992-93, while the consumption of powerloom industry is the same

within seven years. It is the proof of the only intension of the farmers’, politicians

to earn money through export, while the local need is not fulfilled. Not only the

politicians but also the yarn traders and middlemen exploit the Malegaon

powerloom owners forever. Artificial scarcity, ever increasing rates, hoarding,

black marketing and will dependent rates are some factors which create the crisis

in the powerloom industry of Malegaon. The powerloom, owners never came out

of the hands of the yarn traders. It can be said that it is because of the Maharashtra

government who adopted such a policy to provide an opportunity to the cotton

growing farmers and also to the government directly or indirectly. The mill owners

and spinning mill owners or the chief promoters and directors are the ministers in

the government. The one and same person is at a time, cotton grower, mill owner,

director of spinning mill, yarn trader and minister, so how is it possible to frame

the policy for the benefit of the powerloom owners. In this dirty politics of

Maharashtra, the ministers are corrupted and are looting with both hands the

powerloom owners. It is not the welfare state for the people. In each and every

walk of life people are suffering from various problems and struggling for their

lives while ministers and politicians are living a luxurious life.

PERFORMANCE OF SPINNING MILLS IN MAHARASHTRA :

At present there are 68 spinning mills in Maharashtra by the end of March

1999. 30

The details of spinning mills are as under.

i) 49 mills of ring spinning having 11.95 lakh spindles and 1224 rotors.

ii) Open mills are 11 having 6008 rotors.

iii) Mixed pattern mills are 7 having 31260 spindles and 2688 rotors.

iv) One texturised unit. 31

Out of 68 spinning mills in Maharashtra, only 5 mills are in earning position. 12

spinning mills earned profit in the year 1997-98 but having cash loss in the year

1998-99 including Malegaon Spinning Mill, 26 mills are in heavy loss. Out of 68

spinning mills only 43 mills have submitted their financial report, out of those 43

spinning mills, 26 mills are in loss.

Table No. 8.12

No. Name of

Spinning Mills

Rs. In

Lacs

No. Name of

Spinning Mills

Rs. In

Lacs

1

2

3

4

5

6

7

8

9

10

Aaokot

Amrawati

Aurangabad

Bada Saheb Naik

Deccan

Ichalkaranji

Indira Mahila

Malegaon

Jungabad

Jalgaon

1875

717

857

181

1137

1467

564

243

1853

565

21

22

23

24

25

26

27

28

29

30

Pen Ganga

Parbhawati

(Parbhani)

Gadge Baba

(Dariyapur)

Sanjay Gandhi

Sharda

Sangola

Sholapur Bunker

Wardha

2750

1941

2714

1159

1154

892

1147

821

432

1078

11

12

13

14

15

16

17

18

19

20

Jawahar (Latoor)

Jawahar (Dhule)

Kolhapur

Maharashtra

(Bhusawal)

Mark Day

Nagpur Bunker

Nagpur District

Nanded

New Maharashtra

Akola

1482

26

2339

2117

353

1049

101

725

485

127

31

32

33

34

35

36

37

38

39

Wasant Rao Naik

Wasant Dada

(Sangli)

Vishwa Bharti

Jalgaon

Sawli

Yashwant

Baramati

Ganesh

Janta Ichalkaranji

Khanpur

Ratnagiri

3459

229

270

467

1349

805

205

753

1199

Source : Maharashtra State Co-operative Spinning Mills Fed. Annual Report (1997-98)

Most of the spinning mills are in the hands of the members of Parliament or

Assembly from various political parties. These political leaders are also the chief

promoters of such spinning mills. Hence, the national wealth is looted by such

politicians. These politicians are living luxurious life while the poor people are

suffering a lot.

It is concluded that

“The majority of the spinning mills in co-operative sector have lost heavy large

funds due to continuous cash losses. These mills have negative margin of working

capital. Hence these mills are unable to get a fresh working capital assistance from

the bank. Many of the mills are running on job work basis. As a result, these mills

are incurring heavy cash losses. 32

Taking into consideration the performance of spinning mills in co-operative

sector in the state of Maharashtra is not satisfactory. Due to continuous loss in the

spinning mills, these mills might be locked one day or the other. It is because of

the faulty policy of the government, out of 49 spinning mills, 27 mills are in loss of

Rs. 7066.95 lakhs. The cash loss per spindle is Rs. 936.01 while the 19 spinning

mills have not produced their reports. Out of 68 mills only 4 are running in profit.

Taking into consideration the performance, it can be said that the co-

operative sector of spinning mills have failed in Maharashtra State.

The comparative financial performance of the reporting mills for the last 5

years has been tabulated here under :

Table No. 8.13

No Year ending 31st March 1995 1996 1997 1998 1999

1

2

3

4

5

6

7

8

9

10

11

12

13

14

Total no. of ring spinning

mills in production

Installed spindles if

These mills in lakhs

No. of mills considered

for comparison

Installed spindles of the mills

which have been considered

for comparison in lakhs.

No. of mills having cash

gain

Their installed spindles in

lakhs

Total cash gain in lakh Rs.

Cash gain/Spindles in Rs.

No. of mills having cash

loss

Installed spindles of the

mills in lakhs

Cash losses of these mills

in lakh Rs.

Cash loss per spindle in Rs.

Overall cash gain (+)/loss(-

) in lakh Rs.

Overall cash gain (+)/loss(-

) per spindle in Rs.

43

11.21

29

8.98

15

4.95

2548.4

0

514

14

4.03

2266.5

0

562

+282

+32

44

11.57

27

8.77

9

2.57

726.90

283

18

6.20

3656.9

0

590

-2930

-334

45

11.81

26

7.76

10

3.10

963.70

311

16

4.66

2916.6

0

626

-1954

-252

47

11.83

32

9.26

13

4.18

1075.9

2

257

19

5.08

2443.9

8

481

-1368

-148

49

11.95

31

8.65

4

1.10

292.81

266

27

7.55

7066.9

5

936.01

-

6800.7

6

-

782.23

(Maharashtra State Co-operative Spinning Mills Federation Ltd. Mumbai)33

REFERENCE

1. R. R. Ansari,

A study of marketing problems of powerloom

Industy in Malegaon

Thesis submitted to Amravati University, 1979

Page No. 79

2. Yantra-Magh. Monthly – Ichalkaranji.

Udyog Publication, 22, Laxmi Niwas,

Dadar, Bombay Page No. 5

3. Powerloom Enquiry Committee report 1964

Ministry of Commerce and Textile Industries

Government of India, New Delhi

Page No. 59

4. Madhukar Shinde

Khandesha-teel Kirni Kamgar-Chadwad

Thesis submitted to Pune University in 1996

Page No. 62

5. Yantra-Magh. Monthly – Ichalkaranji.

Page No. 64

6. Ibid.

7. Ibid.

8. Tidke Commeettee Report,

Government of Maharashtra,

1945, Page No. 24

9. Powerloom Corporation report 1973

10. A. N. Agrawal,

Indian Economy and economic problems of Maharashtra

Nirali Prakashan Pune.

Page No. 448

11. Technical performance report 1998-99

Maharashtra State Co-operative spinning Mills

Federation, Muumbai,

Page No. 79

12. According to the Malegaon Municipal Council

13. The all India Handloom Board, Second Annual Report,

Ministry of Commerce & Industry,

Government of India 1955

Page No. 24

14. Rationalisation of the Indian Cotton Mill Industry,

The Mill Owners Association, Bombay 2000

Page No. 47

15. Compendium of Textile statistics,

1999 office of the Textile Commissioner

Government of India, Mumbai

Page No. 44, 45

16. Ibid Page No. 49

17. Technical Performance Report 1998-99

Maharashtra State Co-operative spinning mills

Federation, Mumbai

Page No. 22

18. Ibid.

19. Office of Economic Advisor,

Government of India,

Index No. Of Wholesale Prices.

20. Ministry of Industry Report of the

Powerloom Enquiry Committee 1964,

Government of India.

21. Ministry of Commerce,

Report of the Working Group, 1964

Government of India

22. Ministry of Commerce, Report of the High

Power Study Team on the Problem of the The

Handloom Industry, 1974


23. Programme Evaluation organization,

Planning commission, quick survey of Availability

And sale of controlled cloth in 32 Urban Towns, 1978


24. Report of the Cotton Textile Committee

1968 appointed by the Government of Maharashtra

Bombay

25. Ministry of Finance, Report of the Expert Committee

on Tax measures to promote employment, 1980


26. The all India Handloom Board, Second Annual Report,

Ministry of Commerce & Industry,

Government of India, 1955

27. Rationalisation of the Indian Cotton Mill Industry,

The Mill Owners Association,

1954, Bombay

28. Annual Report of the Powerloom &

Handloom Co-Operative Societies at

1990, Icchalkarnaji.

29. Gadgil D. R.,

Economic Policy & Development,

Gokhle Institute of Politics & Economics Publication,

1955

30. Fairdeal to Handloom, By Somappa M,

8 October 1956

31. Compendium of Textile Statistics,

1999 Office of the Textile Commissioner,

Government of India, Mumbai

Page No. 44, 45

32. Ibid. Page No. 49

33. Technical Performance Report 1998-99

Maharashtra State Co-Operative

Spinning Mills Federation Mumbai

Page No. 22

xxx

role of maharashtra government

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