Surat: A few power loom weaving clusters in the country’s largest man-made fabric hub in the city are planning to observe a month-long vacation from October 20 due to recession and losses caused by central government’s decision to lapse accumulated input tax credit (ITC) worth several crores.
A couple of power loom clusters like Sayan industrial estate have already announced month-long Diwali vacation from October 25 until November 20. About 1.20 lakh power looms in Sayan will be shut for a month.
Industry sources said industrial clusters like Kim-Pipodara, Kapodara, Laskana, Diamond Nagar, Jholva, Bamroli, Udhna and Pandesara may also follow suit. These clusters mostly have conventional power loom machines to manufacture unfinished MMF fabrics valued at Rs10 to Rs20 per metre.
The city’s power loom sector has installed capacity of 6.5 lakh power loom machines in more than 20,000 units located in different parts, employing over 8 lakh workers. The daily production of fabric is pegged at 2.5 crore metre per day.
Sayan Weavers’ Association president Mukesh Patel told TOI, “There is a huge gab in demand and supply. Prices of yarn have increased by almost Rs50 per kilogram in the last couple of months. Our demand for the utilization of ITC credit is yet to be accepted by the central government. In such circumstances, we are unable to operate our units. We had conveyed to our workers the decision to observe month-long vacation well in advance. It was a unanimous decision by the weavers in Sayan.”
However, a couple of industrial estates have decided to keep the vacation short.
Sachin Weavers’ Association president Mahendra Ramoliya said, “There are over 2,000 units in Sachin GIDC and majority of them are doing value addition of fabrics. The total investment in machinery including rapier and water jet is to the tune of Rs2,000 crore. The fabrics manufactured in Sachin have a price range starting from Rs50 to Rs500 per metre. Hence, the unit owners won’t join the month-long strike and compromise their business.”
Federation of Gujarat Weavers’ Welfare Association (FOGWA) president Ashok Jirawala said, “FOGWA is there for the welfare of power loom sector. If the power loom weavers feel that they are unable to sustain in the present business environment, they are free to take a call for early Diwali vacation. The Ministry of Finance, Government of India had asked us to submit details of the accumulated input tax credit (ITC) following the representation by Navsari MP, CR Paatil. The credit lapse notification of the central government will cost the power loom community dearly.”