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CHAPTER XII Public Sector Undertakings
NATIONAL TEXTILE CORPORATION LIMITED Background National
Textile Corporation Ltd. (NTC) was set up with the main objective of managing
the affairs of the Sick Textile Undertakings taken over by the Government. It
was also proposed to rehabilitate and modernize these Mills after the take
-over and expand them wherever necessary with a view to making them
economically viable. NTC Ltd.
(Holding Company) was incorporated in April, 1968 and started functioning in
October, 1968. At present there are 119 mills, controlled by 9 subsidiary
Corporations of the Holding Company namely, NTC(APKKM), NTC(DPR), NTC(MP),
NTC(MN), NTC(SM), NTC(GUJ), NTC(TN&P), NTC(UP) & NTC(WBABO). Capital Structure NTC Ltd.
(Holding Company) started with an Authorized Capital of Rs.10.00 Crores,
which was raised from time to time. It stands at Rs. 600 Crores as on date.
The paid up capital as on date is Rs. 512.10 Crores. Capacity The Installed
capacity of the mills under NTC as on 30.09.2000 was 31.83 lakh spindles and
29621 looms whereas the commissioned capacity was 26.44 lakhs spindles and
18953 looms. Performance
During :- 2000-2001 Financial Results: During the
period April-Sept. 2000 NTC group has reported a provisional net loss of Rs. 542 Crores. The Group’s
anticipated net loss for the year 2000-2001 is expected to be Rs. 1084 Crores (Prov.) The cash loss
suffered by the NTC Group before depreciation, tax and interest on Government
loans is Rs. 323 Crores (Provisional) for the period April-Sept 2000. Looking
at the trend, this figure for
the year 2000-2001 is likely to
be Rs. 646 Crores (Prov.). Four major
factors, namely, shortage of working capital, stoppage/curtailment of
activities, payment of idle wage to employees and lack of modernization put
together, are responsible for deteriorating performance of NTC mills. Performance Parameters a)
Production During the
period April-September, 2000, NTC mills have reported a production of
21million kgs of Market Yarn (own) and 12 million kgs. of job work yarn. Based on this trend, the total
annual production during 2000-2001 is estimated to be around 66 million kgs,
including job work. NTC mills have
produced 20 million mtrs. of cloth (own)during the period
April-September,2000. In
addition NTC mills have undertaken job work for cloth production to the tune
of 2 million mts. during this period.
If the same trend
continues, the total annual production of cloth during 2000-2001, both own production as well as job
work, is expected to be of the order of
44 million mtrs. b) Turnover The sales of
the Market yarn (own) in value terms for the period April-September,2000 is
approx. Rs.190 crores. During this period, the mills have also earned Rs 41
Crores by undertaking job work of market yarn. On this basis, it is estimated
turnover for the whole year 2000-2001, for yarn, both own production as well
as job work, is expected to be around Rs. 462 Crores. The sale of
Cloth (own) in value terms for the period April-Sept.2000 is of the order of
Rs. 54 Crores. In addition, the
mills have earned about Rs. 2 Crores during April-Sept.2000, by way of doing
Job Work for cloth production. If the same trend continues, the turnover
for cloth for the whole year is expected to be
of the order of about Rs 112 Crores. Based on the above indications, the total
turn over of NTC group is expected to be at about
Rs.622 Crores, including income from processing of cloth, show room sales and
other miscellaneous sales. c) Exports
Exports in
value terms during the period April-Sept.,2000 have been Rs.10 Crores which
is expected to touch Rs. 20.00 Crores for the whole year 2000-2001. d) Employment At the end of
Sept.2000, there were 84645 employees on roll in NTC Group. As per the Turn
Around strategy,1995, 62086 workers and 7385 Officers and staff totaling 69471 employees were identified as
surplus. According to available data, up to end August’2000, 63824 employees
had opted for VRS since Sept.’1992 when this VRS was introduced. e) Activity Status Due to acute
shortage of working capital funds and other reasons, the mills, under
NTC have not been able to
utilize their full capacities. The activity status of mills during July-Sept.,2000 was as under :- Mills
with no production activity 44 Mills
with partial production activities 40 Mills
with normal production
activities 35 Rehabilitation The overall
provisional accumulated net loss of NTC Group as a whole as on 30.9.2000 was
Rs.7910 Crores. Eight, out of
the nine Subsidiary Corporations have been referred to BIFR which has
declared them as Sick industrial Companies under the provision of the Sick
Industrial Companies (Special Provisions) Act, 1985. The BIFR has also
appointed operating agencies for drawing up rehabilitation plans. The
rehabilitation plans for all the 8 subsidiary corporations of NTC were placed
before the BIFR. The BIFR has issued show cause notices for winding up of
four subsidiary corporations, namely, NTC(MP) Ltd. NTC (GUJ) Ltd., NTC(WBABO)
Ltd. and NTC (UP) Ltd. The Government
has approved the following approach for all the mills of the
eight sick subsidiaries of NTC: i) There
will be a unit-wise assessment to decide whether a unit is revivable or
unviable . ii) All
revivable mills will be revived. iii) Unviable
units will be closed with an attractive VRS/VSS option offered to the
employees. Submissions
have been made to BIFR accordingly. The British India Corporation Limited,
Kanpur The British
India Corporation Ltd. was taken over by the Government of India on 11.6.1981
by acquisition of all Private shares.
The BIC has two woollen mills, namely, Cawnpore Woollen Mills Branch
(Lalimli) and New Egerton Woollen Mills Branch (Dhariwal) under its direct
control. Besides it has two
cotton Subsidiary companies, namely, Elgin Mills Co. Ltd. and Cawnpore
Textiles Ltd. The two woollen
mills have 10,176 woollen spindles and 22,092 worsted spindles, 518
powerlooms and 162 handlooms.
The total share capital of the BIC is Rs.44.66 crores out of which the
share holding of the Government of India is Rs.42.96 crores. The total number of employees in the
BIC is 3799. Financial Performance The net loss
for the financial year1998-99 was Rs.49.20 crores while the net loss for the
year 1999-2000 is Rs.37.62 crores.
The cumulative net loss upto 1999-2000 is Rs.411.61 crores against which cumulative budgetary support including amounts
released for salaries and wages have been Rs.204.12 crores upto
1999-2000. The main reasons for
losses suffered by BIC Ltd. include obsolete machinery, excess man-power,
shortage of working capital etc. Physical Performance The capacity
utilisation for the year 1999-2000 is 12.00% in worsted spindles and 5.82% in
the woollen spindles while the capacity utilisation in weaving Sulzer looms
is 30.90% and in old power looms 3.09%.
The value of production is Rs.10.73 crores as against Rs.4.14 crores
for the previous year. Reference to the BIFR In 1993, the
Company was referred to the BIFR which declared it a Sick Industrial Company. The BIFR passed orders on 31.10.94
recommending the winding up of the Company. Against this order of BIFR, the Company filed an appeal
before the AAIFR on 26.12.1996.
The AAIFR also dismissed the appeal of BIC at its hearing held on
9.5.97 as the AAIFR felt that no rehabilitation scheme was feasible for the
BIC Ltd. The matter is
pending in High Court Allahabad. The Government
asked the Wool Research Association (WRA) to prepare Techno-economic
Viability Reports of the two woollen mills separately to consider the
feasibility of reviving the units/Company. The report was submitted by WRA to Ministry of Textiles in
February, 1998 . Government
approved a proposal for the
revival of the Company for the
two woollen mills at an estimated cost of Rs.211 crores, which may involve
conversion of government loan into equity and write off interest
thereon. The Company is before
the High Court, Allahabad for winding up, but on an application made by BIC,
the High Court has remanded the case back to the BIFR where the revival
proposal has been submitted for consideration and approval. (a) THE ELGIN
MILLS COMPANY LIMITED, KANPUR The Elgin Mill
Company Ltd., is a Composite Textile Mill known as Elgin Mill No. 1 and Elgin
Mill No. 2 and is a subsidiary of the British India Corporation Ltd.,
Kanpur. It has an installed
capacity of 1,18,092 spindles and 2,376 looms and employs 2789 workers &
staff as on 31.10.2000. Physical & Financial Performance The capacity
utilisation both spinning and weaving for the year 1999-2000 was 'Nil' ( the
operation has been totally stopped since December, 1995). The Company incurred a loss before
charging interest and depreciation of Rs.15.68 crores in the year 1999-2000. The accumulated net loss as on
31.3.2000 stood at Rs.662.93 crores including interest of Rs.301.36 crores on
Government loan. Reference to BIFR BIFR on
September, 1994 recommended winding up of the Elgin Mills Company Ltd.,
before the Hon'ble High Court, Allahabad. The appeal preferred by the Company before AAIFR against
the order of BIFR has been dismissed on 9th May, 1997. The Hon'ble High Court, Allahabad has
passed order for winding up of the Company and appointment of Liquidator on
29th September, 1999. On Special appeal No. 1121/99 preferred against
aforesaid order of the Hon'ble High Court passed on 13th October, 1999
staying further action of take over by the Official Liquidator. However, at the hearing on 24th July,
2000, the Hon'ble High Court, Allahabad directed that the said stay order
dated 13.10.99 would remain in operation only upto 18..8.2000. (B) CAWNPORE TEXTILES LIMITED, KANPUR The Cawnpore
Textiles Limited is a Cotton Textile Subsidiary of the British India
Corporation Limited, located at Kanpur.
It has an installed capacity of 37800 spindles, 604 looms per shift and employs 1502
workers and staff per day as on 16th January, 2001. Physical & Financial Performance The production
has been completely stopped
since 12th May,'97 after the disclosure of Government order discontinuing the
Budgetary support against salary & wages and VRS after 11th August, '97
(original date since extended till date). The Company incurred losses,
amounting to Rs.7.90 crores before interest and depreciation during 1999-2000. The expected losses before interest
and depreciation during 2000-01 would be Rs.7.66 crores approx. The accumulated net losses as on
31.3.2000 stood at Rs.118.58 crores including interest amounting to Rs.57.38
crores on Government loans and anticipated net accumulated losses as on
31.3.2001 would be Rs.137.43 crores. Reference to BIFR BIFR in January
'95 recommended winding up of Cawnpore Textiles Limited before Hon'ble High
Court, Allahabad. An appeal
was preferred by the Company
before AAIFR against the aforesaid orders, which was dismissed on 9th May,
1997 and the matter was referred to the Company Court at Allahabad High
Court, which passed an order
appointing Liquidator on
29.9.1999. However further
action on take over by the Official Liquidator was stayed by a Division Bench
on 28.10.99. Further, on 24th
July, 2000, the Hon'ble High Court, Allahabad directed that Stay Order dated
28.10.99 shall remain in operation till 18..8.2000. BIRDS JUTE & EXPORT LTD. (BJEL),
KOLKATA The Birds Jute
& Export Ltd., is the only subsidiary Corporation of the National Jute
Manufactures Corporation (NJMC) Ltd.
This company has been incurring losses for the last several years. The total sales have decreased from
Rs. 166 lakhs in 1994-95 to Rs.
15.31 lakhs in 1999-2000. The
loss for the year 1998-1999 was Rs. 396 lakhs in comparison to Rs. 245 lakhs
in 1994-95. The reasons for loss
were poor machinery condition coupled with the steep increase in input price,
high increase in wage costs and huge interest on loans. Poor off take in the
market is also the reason for recurring losses. The company has
repaired and renovated some machinery.
However, the shortage of working capital coupled with accumulated
losses does not permit the company to run even partially at present. The company is preparing a revival
plan in consultation with the operating agency. As per the
balance sheet (abstract), the following has been the performance of BJEL 1999-2000. (Rs. in lakhs) a) Gross
Sales Nil b) Other
Income 42.84 c) Net
Worth
(-)3238.16 d) Turnover Domestic Nil Exports Nil e) Operating
Expenses 140.23 f) Gross
Profit /loss
(-)97.39 g) Net
profit/loss (after
(-)495.84 Tax
interests and Depreciation) Table 12.1
NATIONAL JUTE
MANUFACTURES CORPORATION LIMITED (NJMC), kolkata Background National Jute
Manufactures Corporation Limited (NJMC) was incorporated in 1980. There are
six nationalised Jute Mills under its management of which five are located in
and around Calcutta and one at Katihar, Bihar. NJMC is the only Public Sector
Undertaking engaged in Jute goods manufacture. The Undertakings of the six
Jute Mills viz. National, Kinnison, Khardah, Alexandra, Union and RBHM, the
management of which were earlier taken over by the Govt. under the Industries
(Development & Regulation) Act 1951 were nationalised and vested in NJMC.
The Mills produce traditional Jute goods like Hessian, Sacking, Jute Twine
and also Jute Carpet Backing Cloth (CBC). Production, Productivity &
Performance At the time of
Nationalisation production of the mills under NJMC was around 1.10 Lac tons
per annum which went up to 1.33 Lac tons in the year 1985-86. There is
however, a decline in production during the last 3 years. The present trend
of production, productivity
& performance is tabulated above at Table 12.1. Reference to BIFR In view of
continuous cash loss and complete erosion of net worth, NJMC was referred to
the Board for Industrial and Financial Reconstruction (BIFR) on 11th Aug.,
1992. BIFR has directed the Operating Agency (IIBI) to prepare a Unitwise
viability. THE JUTE CORPORATION OF INDIA LTD (JCI)
, kolkata The
Jute Corporation of India Ltd. is the official agency of the Govt. of India
in implementing its policy of providing minimum support price to the jute
growers and to serve as a stabilizing agency in the raw jute sector. However,
in years when prices of raw jute had ruled above the minimum support level,
JCI had also undertaken commercial operation. It has completed 29 yeas of
service to the jute growers in April’2000. Infrastructure Currently JCI
is operating through 171 purchase centers situated in 7 jute growing States,
namely, West Bengal, Assam, Meghalaya, Bihar, Orissa, Andhra Pradesh and
Tripura. In order to increase its market coverage JCI during the current
season approached to the Apex Cooperative Societies of the jute growing
States to participate in the MSP operation in raw jute/mesta through their
centers. In response to this, 40 cooperative centres in West Bengal and 5
cooperative centres in Bihar are acting as agents of JCI in procuring raw
jute during the current season (2000-01) under MSP operation. Apart from this
attempts were made to utilize the village level service societies to procure
raw jute directly from the growers and to deliver the same to the nearest
JCI/Cooperative centers. By this arrangement 5 village level service
societies are procuring raw jute in Assam. Range of Services Provided The main
activities of JCI are : MSP operations
for the benefit of marginal jute farmers and commercial operation at prices
above support level depending on the raw jute market situation. During the
current season the Corporation procured a quantity of around 7,19,454
quintals through its own purchase centers and 93,237 quintals through its
agent cooperatives i.e. altogether 8,12,691 quintals, equivalent to approx.
4.51 lakh bales as on 6.11.2000
under minimum support operation. Pioneering the
establishment of BIS standards for raw jute grading. Due to strict quality
control, jute purchased and packed by the Corporation fetches a premium in
the raw jute market. Acting as
Inspection Agency of the Government prior to export of raw jute as and when
called for. Government of
India entrusted JCI to function as a nodal agency for implementation of two
projects - (1) for construction of 14 cost effective community retting tanks
( 5 in Assam, 5 in AP and 4 in Bihar) on 50:50 cost sharing basis between the
Government of India and the respective State Governments. On completion of this project,
community retting tanks would be used by the local jute growers for jute
retting, fishery and other household work. (2) A project on further development of a
manual/power driven ribboner machine for extraction of fibre from green jute
plant. Under this project NIRJAFT has developed a machine capable of extracting
ribbon from multiple jute plants. The machine was put to trial during the
current season. NIRJAFT is working for further development of this machine. Providing
services in the field of market research and acting as a decision support
system in the field of agricultural marketing. THE COTTON CORPORATION OF INDIA LTD. (CCI),
mumbai The CCI was set
up in 1970. It came into
existence with the objective of acting as the canalising agency for import of
cotton and undertaking purchase of raw cotton for giving necessary price
support to enterprising cultivators
growing new varieties of cotton developed as substitute for imported
Long and Extra Long Staple Cotton and also for procuring raw cotton for
textile mills both in public and private sector. Over the years, its operations have undergone significant
changes in keeping with the development which have taken place in the Indian
Cotton Economy during the past two decades. Subsequently, the CCI’s role was expanded to carry out
commercial operations for meeting the cotton requirements of institutional
buyers and to fulfill the export quota allotted to it by the Government. The Sales
turnover of the Corporation is expected to be around Rs.807 crore during the
year 2000-2001 as compared to
Rs.546 crore in the year
1999-2000. The net profit after
tax was Rs.1.75 crore in the
year 1999.2000 as against
Rs.12.91 crore in the previous year. The CCI’s sales
of cotton to the quality conscious mills in the private sector (particularly
the 100% EOUs marginally declined form 72.2% during 1998-99 to 68.9% during the
year 1999-2000. The sales to NTC
mills registered a nominal increase from 13.6% to 15.04% during the year
1999-2000. The CCI
intensified its developmental activities during the year while continuing the
existing activities and taking up new ones during the year. These were basically aimed at
increasing production, productivity of cotton and also for improvement in the
processing of cotton. The
developmental activities involved Village Adoption Programme for
dissemination of technology to the farmers to increase the yield per hectare,
production and distribution of
genetically pure certified seeds, distribution of pesticides to cotton
growers, production of genetically improved parental lines of DCH-32 variety,
funding Research Projects for genetic improvement of parental lines of DCH-32
Hybrid cotton in Karnataka, crop surveillance Research Projects on Naturally
coloured cotton, promotion of medium staple cotton, bringing new areas under
cotton, etc. For the
various developmental activities listed above, the Corporation spent an
amount of Rs.1.34 crore during the year 1999-2000. The CCI also
implemented an Action Plan to modernise the Ginning & Pressing Factories
with a view to ensuring contamination free processing of cotton for
improvement in quality and also for ensuring that processing of cotton
conforms to BIS norms. The CCI
continued with this incentive scheme during 1999-2000 and incentive amounting
to Rs.29.98 lakh were given to Ginning and Pressing Factories in different States. The Corporation
has been able to achieve all the targets set under the Memorandum of
Understanding (MOU) signed by it with the Ministry for the period covering
1998-99. The performance of CCI
as per MOU for 1999-2000 is rated as ‘Fair’. The MOU for 2000-2001 has also
been signed with the Ministry in March, 2000. HANDICRAFTS & HANDLOOMS EXPORT
CORPORATION (HHEC), NEW DELHI The Handicrafts
& Handlooms Export Corporation of India Limited (HHEC) was set up in
June, 1962 with the twin objectives of (i) Export promotion, and (ii) Trade
development of handicrafts and Handloom products. HHEC is a trading house in
the export of handicrafts and Handloom products ( including Handknotted
woolen carpet and ready made garments)
besides undertaking export of Gold and Silver Jewellery articles. In the year 1997-98, vide Government
notification No.80/97 Customs dated 21st October, 1997, HHEC along with other
ten agencies was nominated for
import of bullion under OGL, and
sale in the domestic market. In
keeping with its plan for diversification HHEC also undertook import of
mulberry raw silk.
Turn Over The Corporation
achieved a record turnover of Rs. 370.12 crores surpassing the earlier highest of Rs. 318.28 Crores
recorded in the year 1997-98. As
compared to previous year (Rs.139.73) the increase in turnover is 165% Target
for 2000-2001 is Rs. 253.25 Crores which include export of Rs.101.90 Crores. Working Results During the year
1999-2000 the total income increased to Rs. 22.87 Crores as against Rs. 22.57
Crores during the previous year. The overheads (excluding prior period items)
during the year 1999-2000 reduced to Rs. 18.74 Crores as against Rs. 21.03
crores during previous year. The
net profit of Rs. 4.01 Crores is also a record, surpassing the pervious record
profit of Rs.3.84 Crores achieved in the year 1992-93 . The company has again paid to the
Government enhanced dividend of 7% on paid up share capital amounting to
Rs.82.74 lakhs. Statistics The summarized
working results for the last three years alongwith targets for 2000-2001 is
given in table below:- Mulberry Raw Silk Imports The import of
Mulberry Raw Silk was placed in the canalized list vide Notification no. 18
RE- 990 1997-2002 dated 8th July, 1999 and the Corporation was one of the
designated agencies for imports.
The Corporation undertook import of Mulberry Raw Silk and achieved a
sales of Rs.177.71 crores in 1999-2000, as compare to Rs. 21.29 Crores in the
previous year. The imports for
mulberry raw silk has been again
placed in the restricted list of imports w.e.f. 1.4.2000. Memorandum of Understanding A memorandum of
understanding for the year 1999-2000 duly approved by the High Power Committee in the
Department of Public Enterprises was signed between Ministry of Textiles and
the Corporation on 29.04.1999.
The performance evaluation Report for 1999-2000 MOU on the basis of
provisional data has been submitted with Department of public Enterprises and the
Corporation and has been rated as "Excellent". The MOU for the year 2000-2001 has
also been signed on22.3.2000. Export Promotion and Trade Development The Corporation
continued its export promotion and trade development activities during the
year by developing new samples, engaging professional designers and entering
new areas of Handicrafts and was able to generate business for new products in new markets. The Corporation also introduced
e-commerce which is giving positive results and is beginning to receive
orders. HHEC has undertaken
promotion of Indian Handicrafts and handloom products in foreign markets
through improved design inputs.
The Corporation continue giving exposure to traditional Indian,
especially lesser known products in the world market by participating in a number of international fairs on
handicrafts, handlooms, ready to wear and carpets. Achievement upto December, 2000 HHEC has
achieved turnover of Rs. 328.48 Crores upto December, 2000 which direct exports of Rs. 45.90
crores, domestic sales of Rs. 0.67 Crore, bullion imports of Rs. 241.55
crores and silk imports Rs.22.36 crores as against turnover of Rs. 181.90 crores, during the corresponding period last year
which includes direct exports of Rs.43.75 crore domestic sales of Rs. 0.64 crores bullion imports Rs.
41.70 crores and silk imports of Rs.91.18 crores. The net profit upto December 2000 is Rs.2.60 Crores as
against Rs. 0.86 crores last year. Capital The authorized
share capital of HHEC remained Rs. 20 Crores and paid up capital is Rs. 11.82
Crores as on 31st March, 2000. NORTH EASTERN HANDICRAFTS AND HANDLOOMS
DEVELOMENT CORPORATION (NEHHDC), GUWAHATI Introduction The NEHHDC Ltd.
was established in 1977 as a
Regional Nodal Agency for the promotion and development of Handicrafts and
Handlooms in the region. The
areas identified for undertaking promotional and developmental activities included infrastructural and
input support for research, design development, training of craftsmen and
weavers, technical upgradation, supply of raw materials through appropriate
budgetary support. The Corporation
was also required to market the products outside the region and promote
export. Activities The main
activity of the Corporation is developmental covering different spheres
mentioned above. Its secondary
activity is related to marketing.
Its marketing operation are being conducted through a net work of 6 (six) emporia located in metropolitan and other
cities. These emporia also
organize and participate in a variety of exhibitions, Handlooms and
Handicrafts Expos, N.E. Crafts Fair, etc. The
Corporation has also been participating in I.I. T. F., other Trade
Fairs, and Gifts Fairs, etc. on regular basis. During
2000-2001 the NEHHDC has been conveyed administrative approval for the
conduct of 55 exhibition, N.E. Crafts Fair at Chennai, pune, Bangalore,
Mumbai and Calcutta and participation in IITF 2000. Till 31st December 2000, the Corporation has conducted 40
exhibitions, 2 Crafts Fairs in Mumbai and Chennai and participated in IITF
2000 during November, 2000. The
remaining exhibitions and Craft Fairs will be conducted and completed by
March, 2001. Exhibitions and
Craft Fairs on a larger scale is proposed for 2001-2002 as they contribute in
a large measure to the Corporations turn over and providing good exposure to
craftspersons and weavers of North Eastern Region to markets outside the
region. During May 2000, the
Corporation also participated in the Indian Trade exhibitions at Tel Aviv,
Israel organized by ITPO where handicrafts and handlooms products displayed
received very good response.
Catalogues and our price lists have been sent to 20 business houses in
Israel who had approached us in Israel to send them our catalogues and price
lists. The functioning
of the Dye House was stopped from 1st
April, 1994 under the direction of the Government of India . In February 1997, the Government further ordered
winding up of the Dye House and disposal of plant, machinery and other assets
by auction or leasing to other institution. However, complete winding up of the Dye House has not been
possible in absence of Government
decision on the treatment of outstanding secured and unsecured loans availed in the setting up of
the Dye House. Due to closure of
the Dye House the manpower numbering 63
have been rendered idle. However Government has sanctioned funds in
March" 98 for a Cane &
Bamboo Common Facility Center, which will facilitate use of the Dye House building and
also redeployment of about 25 staff
of the Dye House. 20 of
whom were trained at IPIRT, Bangalore.
The Common Facility Centre has stated its trial production from April
2000 and is now fully operational.
Orders for several tonnes of bamboo sticks have been received. So far about 6 tonnes of bamboo
sticks from one stick making machine has been produced and training is being
imparted to 12 craftsmen of Barpeta and Kamrup Districts of Assam with whom
it is proposed to have production tie ups at a later stage. The Corporation
has so far completed the following Promotional and Developmental schemes:- i) 48
page colour catalogue of handicrafts products of NER (5000 copies); ii) CD
Rom on handicrafts of NER (1000
copies). CD Rom of handlooms of
NER (2000 copies); iii) Computerisation
of HO, RO, Liaison Office, New Delhi and Showroom is expected to be completed
by January, 2001; iv) Renovation
of the Sales Promotion cum Liaison Office, New Delhi and renovation of
Bangalore showroom. The
renovation of the Calcutta showroom is expected to be completed by January
2001; v) Completed
training of 96 craftsmen in Cane and Bamboo at Dhupguri. Similar training is in good progress
at Colony Bazar which will be completed by 31.08.2001; vi) Implementation
of the DEPM in North Lakhimpur and development of 40 prototypes. It is proposed to test-export the
products of North Lakhimpur through the Handloom Export Promotion Council of
Chennai; vii) Conduct
of a Fashion Show of N. E. Garments in New Delhi on 11th December, 2000
financed by North Eastern Council; viii) The Corporation
is also actively involved in the implementation of cane and bamboo project of
UNDP; ix)
Completed
survey and study of craft village in Guwahati; x)
Survey and
study of Cane and Bamboo Reserves of North Eastern Region for which State
Forest Research Institute,
Arunachal Pradesh has been commissioned is nearing completion. Two Interim Reports received;
The authorized
share capital of the Corporation is Rs. 2 Crores which is fully paid up and
subscribed by the Government of India.
The Corporation has submitted a proposal to enhance the share capital to R. 15 Crores to
accommodate enhanced equity capital after the conversion of outstanding loans/ interest into equity, grant or
write off. Proposal under the capital restructuring plan submitted to
Government of India. The Corporation has proposed to
raise share capital from Rs. 2 Crores to Rs. 10 crores and convert the entire
Government loans into grant-in-aid. Consultancy work on restructuring of
NEHHDC is also in progress. Performance The detailed
financial performance over a period of five years from 1996-97 to 2000-2001
is as follows: (Rs. in lakhs) The net loss is
due to the following: a) Increased
overheads particularly in salaries on account of revision of pay-scale. b) Huge
idle workforce of dye-house. c) Discontinuation
of promotional and development reimbursement schemes. CENTRAL COTTAGE INDUSTRIES CORPORATION
OF INDIA (CCIC), NEW DELHI The Central Cottage Industries Emporium was established in Delhi in the year 1952 under the Management of the Indian Co-operative Union and was later on taken over by the Central Cottage Industries Association in 1964. The Central Cottage Industries Corporation of India was incorporated on 4.2.1976 as a wholly owned subsidiary of the Handicrafts and handicrafts and Handlooms Export Corporation of India Ltd. However, with effect from 27.3.1991, CCIC has ceased to be a subsidiary of HHEC of India Ltd. and has been brought under the administrative control of the Ministry of Textiles. The main objective of the CCIC is to act as a dealer, exporter, manufacturer and agent of Indian quality Handicrafts and Handlooms products and to develop markets for these products in India and abroad. However, it also engages itself in export activities and is eligible export house. The Corporation has fives showrooms at Delhi, Calcutta, Mumbai, Bangalore and Chennai. Besides, the Corporation has its own production centre at NOIDA for manufacture of readymade garments and accessories. The production centre also has a printing unit where Sarees, fabrics etc. are printed. The authorised
Capital of the Corporation is Rs. 12.00 Crores and the paid up Capital is 10.85
Crores.
The total sales
of the Corporation for the financial year 1999-2000 were of the order of
Rs.5312.46 lakhs as against Rs.5222.54 lakhs during the year 1998-99.
Thus during 1999-2000, the sales increased by 1.72% over the previous year.
Cumulative sales during April-December, 2000 Rs.3873.18 lakhs
approximately. The Corporation
has set for itself an ambitious target of turnover of Rs. 6025 lakhs for the
financial year 2000-2001. The net profit before Tax for the year 2000-01 is
anticipated to be around Rs. 75.00 lakhs. The Corporation
continues to strive for excellence in the field of its operations. To promote traditional crafts of the
country, the Corporation purchases bulk of the merchandise directly from the
artisans. The Corporation
proposes to open more branches in the major cities of India in future. NATIONAL HANDLOOM DEVELOPMENT
CORPORATION (NHDC) Ltd. LUCKNOW. National
Handloom Development Corporation (NHDC) Ltd., Lucknow was set up in February,
1983 a Public Sector Undertaking by the Government of India as an autonomous
body under the Companies Act, 1956, in pursuance of the imperative need for a
National Level Agency to assist the speedy development of the Handloom Sector
by co-ordinating all action covering the procurement and supply of inputs at
reasonable prices, augmenting the marketing efforts of State Handloom
agencies and initiating development activities for upgrading the technology
in the handloom sector and improving their productivity. The main
objectives of the Corporation are :- 1. To
carry on the business of all types of yarn for the benefit of the handloom
sector. 2. To
organise supply of quality dyes and related materials needed by the handloom
sector. 3. To
promote marketing of handloom fabrics including exports. 4. To
aid, assist and implement the projects connected with the production of
handloom fabrics including taking up modernization programme, introduction of
appropriate technology for the handloom sector. The total
authorized capital of NHDC Ltd. is Rs. 20.00 crores and its paid up capital
is Rs. 17.00 crores upto the year 2000-01. The turn over
and profit account of the Corporation for the last three years as under:- During the year
1999-2000, the Corporation has declared dividend @ 21.72 % and paid a sum of
Rs.20.00 lakhs to the Government of India as dividend. The corporation
has shown improvement in its performance as compared to the last year’s
performance. The NHDC has supplied yarn worth Rs. 19681.77 lakhs during the
year 1999-2000 as against Rs. 16928.32 lakhs worth of Yarn supplied in the
year 1998-99. Dyes &
Chemicals worth Rs. 1652.43 lakhs were supplied during 1999-2000 as against
Rs. 1412.95 during the previous year.
201.21 lakh kgs. of Yarn was supplied to user agencies while in the
field of dyes and chemicals the supply was 10.06 lakhs kgs. During the year
2000-2001 (upto January, 2001) the Corporation supplied yarn of 132.26 lakhs
kgs. worth Rs. 13474.04 and 8.27 lakhs kgs. of dyes and chemicals worth Rs.
1416.35 lakhs. |
