PUBLIC SECTOR UNDERTAKINGS - Ministry of Textiles

ANNUAL REPORT 2001-2002CHAPTER XIIPUBLIC SECTOR UNDERTAKINGS1. NATIONAL TEXTILE CORPORATIONLIMITED:National Textile Corporation Ltd (NTC)was set up with the main objective ofmanaging the affairs of the Sick TextileUndertakings taken over by the Government.It was also proposed to rehabilitate andmodernize these Mills after take -over andexpand them wherever necessary with a viewto making them economically viable.NTC was incorporated in April, 1968 andstarted functioning in October, 1968. Atpresent there are 119 mills, managed by theHolding Company and its 9 subsidiaryCorporations namely, NTC(APKKM), NTC(DPR), NTC(MP) , NTC(MN), NTC(SM),NTC(GUJ), NTC (TN&P) NTC(UP) & NTC(WBABO).Capital Structure:The NTC Ltd. (Holding Company) startedwith an Authorized Capital of Rs.10.00Crores, which was raised from time to time. Itstands at Rs. 600 Crores as on date. Thepaid up capital as on date is Rs. 512.10Crores.Capacity:The Installed capacity of the mill underNTC as on 30.06.2001 was 34.03 lakhspindles and 32,454 looms whereas thecommissioned capacity was 26.49 lakhsspindles and 18,972 looms.Performance During 2001-2002:During the period April-June, 2001 NTCGroup has reported a net loss of Rs. 297crore. The Group's anticipated net loss for theyear 2001-2002 is expected to be Rs.1189crore.The Cash Loss suffered by the NTCGroup before depreciation, tax and intereston Government loans and expenditure onVRS is Rs.159.17 crores for the period April-June, 2001. Looking at the trend, this figurefor the year 2001-2002 is likely to be Rs. 637crore.our major factors, namely, shortage ofworking capital stoppage/curtailment ofactivities, payment of idle wage to employeesand lack of modernization put together, areresponsible for deteriorating performance ofNTC mills. Added to this is poor off-take ofyarn during the first half of 2001-2002 dueto slackening of demand.Production:During the period April- June,2001, NTCmills have reported a production of 9 millionkgs of Market Yarn (own) and 5 million kgs of121

MINISTRY OF TEXTILESjob work yarn. Based on this trend, theannual production is estimated to be of theorder of about 56 million kgs, including jobwork.NTC mills have produced 9 millionmeters cloth (own) during the period April-June,2001. In addition NTC mills haveundertaken job work for cloth production tothe extent of 1 million meters during thisperiod. The annual production of the cloth,both own production as well as job work, isexpected to be of the order of about 40million meters.Turnover:The sales of the Market yarn (own) invalue terms for the period April-June 2001 isapprox. Rs.76 crore. During this period, themills have also earned Rs 14 crore byundertaking job work of market yarn. Theestimated turnover for the whole year 2001-2002, for yarn, both own production as wellas job work is expected to be around Rs. 360Crore.The sale of Cloth (own) in value terms forthe period April-June 2001 is of the order ofRs. 27 Crore. The mills have also earnedabout Rs.0.40 crore during April-June,2001,by way of doing Job Work for clothproduction. The turnover for cloth for thewhole year is expected to be of the order ofabout Rs 112 crores.Exports:Orders for export of bed sheets for avalue of Rs.23.87 lakhs have been received.The same is expected to be completed by theend of December, 2001. Similarly,negotiations are being conducted for exportof towels for which samples have beenapproved by the importersEmployment:At the end of June,2001, there were82343 employees on roll in NTC Group.During 2000-2001, 1535 employees havegone on VRS and an amount of Rs.2621.73lakhs was paid to them.Readymade Garments:NTC has diversified into production andsale of readymade garments by using NTCproduced cloth. These include shirts,trousers, Bermuda, shorts, handkerchiefs,kurta-pyjamas etc. These have resulted inboosting up of retail sale. They have beenwidely accepted in the market.Activity Status:Due to acute shortage of working capitalfunds and other reasons, the mills, underNTC Group have not been able to utilize theirfull capacities. The activity status of millsduring April-June, 2001 was as under:-(i) Mills with no production activity 41(ii) Mills with partial production activities 53(iii) Mills with normal production activities 25Rehabilitation:8 out of the 9 Subsidiary Corporations,122

ANNUAL REPORT 2001-2002which were referred to BIR under theprovisions of the Sick Industrial Companies(Special provisions) Act, 1985. BIRcirculated Draft Revival Schemes (DRSs)prepared by Operating Agencies namelyIDBI/ICI and fixed hearings for finalizing thesame in ebruary 2002. It was proposed inDRSs for revival of 44 viable mills and closureof 60 unviable mills after giving VRS toaffected workers.The Government considered the DRScirculated by BIR and conveyed theirconcurrence for the proposed course ofaction consisting of closure of unviable millsand modernizing of viable mills along withthe sacrifices consisting conversion of loaninto equity, waiver of interest on loan, waiverof damages on statutory dues. NTC underinstructions of Government had also filedsubmissions before BIR in each of the 8individual cases giving consent to thesacrifices proposed therein. Governmenthad also taken preparatory steps forimplementing the Rehabilitation Plan underfinalization with BIR.2. THE BRITISH INDIACORPORATION LIMITED,KANPUR:The British India Corporation Ltd. wastaken over by the Government of India on11.6.1981 by acquisition of private shares.BIC has two woollen mills, namely, CawnporeWoollen Mills Branch (Lalimli) and NewEgerton Woollen Mills Branch (Dhariwal)under its direct control. Besides it has twocotton Subsidiary companies, namely, ElginMills Co. Ltd. and Cawnpore Textiles Ltd. Thetwo woollen mills have 10,176 woollenspindles and 22,092 worsted spindles, 518powerlooms and 162 handlooms. The totalshare capital of the BIC is Rs.44.66 croresout of which the share holding of theGovernment of India is Rs.42.96 crores. Thetotal number of employees in the BIC is3537.inancial Performance:The net loss for the financial year1999-2000 was Rs.37.62 crores while the net lossfor the year 2000-2001 is Rs.37.41 crores.The cumulative net loss upto 2000-01 isRs.449.02 crores against which cumulativebudgetary support including amountsreleased for salaries and wages have beenRs.224.32 crores upto 2000-01. The mainreasons for losses suffered by BIC Ltd. includeobsolete machinery, excess man-power,shortage of working capital etc.Physical Performance:The capacity utilisation for the year 2000-01 is 12.40% in worsted spindles and 8.88%in the woollen spindles while the capacityutilisation in weaving Sulzer looms is 31.78%and in old power looms 5.52%. The value ofproduction is Rs.16.04 crores as againstRs.10.73 crores for last year.Reference to the BIR:In 1993, the Company was referred tothe BIR which declared it as a sick industrialCompany. The BIR passed orders on123

MINISTRY OF TEXTILES31.10.94 recommending the winding up ofthe company. Against the order of BIR thecompany filed an appeal before the AAIR on26.12.1996. AAIR also dismissed theappeal of BIC at its hearing held on9.5.1997 as the AAIR felt that norehabilitation scheme was feasible for the BICLtd. The Government asked the WoolResearch Association (WRA) to prepareTechno-Economic Viability Report of the twowoollen Mills separately, to consider thefeasibility of reviving the units/company. On21.11.2000, Govt. of India, approved therehabilitation package of the company andthe High Court was requested to remand thecase to BIR for reconsideration. The HighCourt, remanded the matter to BIR forreconsideration of the matter and approval ofthe revival package. The BIR held hearingon 13.6.2001 and appointed IDBI asoperating agency to prepare DraftRehabilitation Scheme(DRS) by December,2001. IDBI is in the process of finalisation ofDRS.(a) The Elgin Mills Company Limited,KanpurThe Elgin Mill Company Ltd., is aComposite Textile Mill known as Elgin MillNo. 1 and Elgin Mill No. 2 and is asubsidiary of the British India CorporationLtd., Kanpur. It has an installed capacity of1,18,092 spindles and 2,376 looms.Physical & inancial Performance:The capacity utilisation both spinning andweaving for the year 2000-01 was 'Nil' ( themills operation has been totally stopped sinceDecember, 1995). The Company incurred aloss before charging interest anddepreciation of Rs.4.98 crores in the year2000-01. The accumulated net loss as on31.3.2001 stood at Rs.724.48 croresincluding interest of Rs.366.36 crores onGovernment loan.Reference to the BIR:BIR on September, 1994 recommendedwinding up of the Elgin Mills Company Ltd.,before the Hon'ble High Court, Allahabad.The appeal preferred by the Company beforeAAIR against the order of BIR wasdismissed on 9th May, 1997. The Hon'bleHigh Court, Allahabad passed order forwinding up of the Company and appointmentof Liquidator on 29th September, 1999. OnSpecial appeal No. 1121/99 preferredagainst aforesaid order of the Hon'ble HighCourt passed on 13th October, 1999 stayingfurther action of take over by the OfficialLiquidator. However, at the hearing on 24thJuly, 2000, the Hon'ble High Court,Allahabad directed that the said stay orderdated 13.10.99 would remain in operationonly upto 18..8.2000.Voluntary Separation Scheme(V.S.S.):With a view to protect the interest of theworkers and as a special case, Governmentintroduced the Voluntary Separation Schemeeffective from 1st June, 2001 upto 30th June,2001 which has been implemented almost fully.124

ANNUAL REPORT 2001-2002(b) Cawnpore Textiles Limited, KanpurThe Cawnpore Textiles Limited is aCotton Textile Subsidiary of the British IndiaCorporation Limited, located at Kanpur. Ithas an installed capacity of 37800 spindles,604 looms per shift.Physical & inancial Performance:The production has been completelystopped since 12th May,1997 after thedisclosure of Government orderdiscontinuing the Budgetary support againstsalary & wages and VRS after 11th August,'97 (original date extended till 22.3.2000).The Company incurred losses, amounting toRs.2.31 crore before interest anddepreciation during 2000-01. Theaccumulated net losses as on 31.3.2001stood at Rs.132.56 crore including interestamounting to Rs.68.97 crore onGovernment loans.Reference to BIR:BIR in January '95 recommendedwinding up of Cawnpore Textiles Limitedbefore Hon'ble High Court, Allahabad. Anappeal was preferred by the Companybefore AAIR against the aforesaid orders,which was dismissed on 9th May, 1997 andthe matter was referred to the CompanyCourt at Allahabad High Court, whichpassed an order appointing Liquidator on29.9.1999. However further action on takeover by the Official Liquidator was stayed bya Division Bench on 28.10.99. urther, on24th July, 2000, the Hon'ble High Court,Allahabad directed that Stay Order dated28.10.99 shall remain in operation only till18..8.2000.Voluntary Separation Scheme (V.S.S.):With a view to protect the interest of theworkers as a special case, Governmentintroduced the Voluntary Separation Schemeeffective from 1st June, 2001 upto 30thJune, 2001 which has been implementedalmost fully.3. BIRDS JUTE & EXPORT LTD.(BJEL), KOLKATA:The Birds Jute & Export Ltd., is theonly subsidiary Corporation of the NationalJute Manufactures Corporation (NJMC) Ltd.This company has been incurring losses forthe last several years. The total sales havedecreased from Rs. 166 lakhs in 1994-95to nil in 1999-2000. The losses suffered bythe Corporation during the past years havealso been increasing continuously. Thereasons for loss were poor machinerycondition coupled with the steep increase ininput price, high increase in wage costs andhuge interest on loans. Poor off take in themarket is also the reason for recurringlosses.The company has repaired andrenovated some machinery. However, theshortage of working capital coupled withaccumulated losses does not permit thecompany to run even partially at present.The company is preparing a revival plan inconsultation with the operating agency.125

MINISTRY OF TEXTILES4. NATIONAL JUTE MANUACTURESCORPORATION LIMITED (NJMC),KOLKATA:National Jute ManufacturesCorporation Limited (NJMC) wasincorporated in 1980. There are sixnationalised Jute Mills under itsmanagement of which five are locatedin and around Calcutta and one atKatihar, Bihar. NJMC is the only PublicSector Undertaking engaged in Jute goodsmanufacture. The Undertakings of the sixPERORMANCE INDICATORSSacking, Jute Twine and also Jute CarpetBacking Cloth (CBC).Production, Productivity &Performance:At the time of Nationalisation productionof the mills under NJMC was around 1.10Lac tons per annum, which went up to 1.33Lac tons in the year 1985-86. There ishowever, a decline in production during thelast several years. The present trend ofproduction, productivity & performance istabulated below:Particulars 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-2002(UptoNov'01)Production (M.T.) 77583 76313 70013 46605 54245 17969Production per day (M.T.) 257 253 235 214 180 127CapacityUtilisation (%) 49 48 45 41 34 24Average hands per day 23066 22431 22400 20952 19387 17373Mandays per M.T. 90 89 95 98 108 137(Rs. in crores)Export Sales 42.37 34.00 25.47 12.43 0.16Domestic Sales 123.05 131.14 102.46 121.79 46.14(Rs. in crores)Total Sales 187.86 157.05 156.61 114.89 127.04 46.14(Rs. in crores)Net Loss* 92.57 127.23 132.99 116.33 82.27(Rs. in crores)G.O.I Loan 80.00 70.00 104.11 96.00 96.00 64.00(Rs in crores)* excluding interest on Govt. LoanJute Mills viz. National, Kinnison, Khardah,Alexandra, Union and RBHM, themanagement of which were earlier takenover by the Govt. under the Industries(Development & Regulation) Act 1951 werenationalised and vested in NJMC. The Millsproduce traditional Jute goods like Hessian,Reference to BIR:In view of continuous cash loss andcomplete erosion of net worth, NJMC wasreferred to the Board for Industrial andinancial Reconstruction (BIR) on 11th Aug.,1992. IIBI, the Operating Agency, prepareda Unit wise viability Plan and accordingly126

ANNUAL REPORT 2001-2002BIR issued show cause notice for winding upof the Company. Government of India with aview to protect employment to the extentpossible and to safeguard the interest of theworkers has submitted to BIR that the ordersof winding up of NJMC may be kept inabeyance and mill wise approach for revivalattempted. The mills are to be handed overwith the condition that they shall be run forten years and workers' interest protected. IIBI,which is the operating agency appointed byBIR, has issued the necessary advertisementin this regard and some private sectorcompanies have shown interest in the offer.Bids have been received by IIBI, which hassent its report to BIR.5. THE JUTE CORPORATION OINDIA LTD. (JCI), KOLKATA:The Jute Corporation of India Ltd. isthe Official Agency of the Govt. of India inimplementing its policy of providing MinimumSupport Price to the jute growers and to serveas a stabilising agency in the raw jute sector.However, in years when prices of raw jute hadruled above the minimum support level theJCI had also undertaken CommercialOperation. It has completed 30 years ofservice to the jute growers in April, 2001.Infrastructure:Currently JCI is operating through 171purchase centers situated in 7 jute growingStates, namely, West Bengal, Assam,Meghalaya, Bihar, Orissa, Andhra Pradeshand Tripura. In order to increase its marketcoverage JCI during the current season it hasinvolved cooperative Societies of the jutegrowing States to participate in the MSPoperation in raw jute mesta through theircenters. In response to this, 40 cooperativecenters are acting as agents of JCI inprocuring raw jute during the current season2001-2002 under MSP operation. Apartfrom this attempts were made to utilize thevillage level service societies to procure rawjute directly from the growers and to deliverthe same to their nearest JCI/Cooperativecenters. By this arrangement, a few villagelevel service societies are procuring raw jutein Assam.Range of Services Provided:Price Support operation aims atprocuring raw jute from the small andmarginal farmers at the minimum supportprices (MSP) fixed by the Government of Indiafrom time to time.During the current season, theCorporation procured a quantity of around374707 quintals through its own purchasecenters and 66449 quintals through its agentcooperatives i.e. altogether 441156 quintals,equivalent to approx. 2.45 lakh bales as on13.02.2002 under minimum support priceoperation.Undertaking price support operation bythe Corporation was found to be mosteffective measure to arrest inter-seasonal andintra-seasonal fluctuation in raw jute prices asit creates a notional buffer stock in siphoning127

MINISTRY OF TEXTILESthe excess supply in the market and holds ittill a shortage situation is attained when thisjute is supplied to jute mills so that prices donot reach an unhealthy peak and by that wayboth the producer and consumer arebenefited in the process.Another important activity of theCorporation is to undertake commercialoperation i.e. purchase of raw jute at pricesabove the minimum support level oncommercial consideration to generate profit.The Corporation has entered the field ofmarketing of non-traditional jute products incollaboration with the Jute ManufacturesDevelopment Council with inauguration of aSales Emporium named 'SONALI' at Calcuttain April, 1989.The Corporation also provides service inthe field of marketing research and acts as adecision-support-system in the field ofagriculture marketing.6. THE COTTON CORPORATION OINDIA LTD., MUMBAI(CCI):The CCI was set up in 1970. It came intoexistence with the objective of acting as thecanalising agency for import of cotton andundertaking purchase of raw cotton for givingnecessary price support to enterprisingcultivators growing new varieties of cottondeveloped as substitute for imported Longand Extra Long Staple Cotton and also forprocuring raw cotton for textile mills both inpublic and private sectors. Over the years, itsoperations have undergone significantchanges in tune with the needs of the Indiancotton economy during the past two decades.Subsequently, the CCI's role was expanded tocarry out commercial operations includingexport of cotton.With the launching of the TechnologyMission on Cotton, the CCI has now beenmade the implementing agency for MiniMissions III and IV, relating toimprovement of marketing infrastructureand modernisation of existing ginning andpressing factories.The turnover of the Corporation isexpected to be around Rs.952 croresduring the year 2001-2002 as comparedto Rs.741 crores in the year 2000-2001.The net loss was Rs.8.58 crores in theyear 2000-2001 as against a profit beforetax of Rs.2.10 crores in the previous year.Sharp decline in cotton export activity andhigher overheads mainly attributed to poorfinancial performance of the Corporation.The CCI's sales of cotton to qualityconscious mills in the private sector(particularly the 100% Export OrientedUnits) marginally increased from 68.9 percent to 72.42% during the year 2000-2001. The sales to NTC mills registered anominal decrease from 15.04% to 14.48%during the year 2000-2001.The CCI intensified its developmentalactivities during the year while continuingthe existing activities and taking up newones during the year. These were aimed at128

ANNUAL REPORT 2001-2002supplementing the efforts of the Ministry ofAgriculture, Government of India and theconcerned State Governments to increaseproduction and productivity of cotton andalso for improvement in the quality ofcotton as well as increase the over-allincome of the cotton farmers.The developmental activities involved'Village Adoption Programme' fordissemination of technology to the farmersto increase the yield per hectare,distribution of genetically pure certifiedseeds and pesticides, distribution ofgenetically improved parental lines ofDCH-32 variety, funding Research Projectsfor genetic improvement of parental linesof DCH-32 Hybrid cotton in Karnataka,crop surveillance, Research Projects onnaturally coloured cotton, promotion ofmedium staple cotton, promoting cottoncultivation in non-traditional cottongrowing States etc. or the variousdevelopmental activities listed above, theCorporation spent an amount of Rs.43.84 lakhs during the year 2000-2001.The CCI also implemented an ActionPlan to modernise the Ginning andPressing factories with a view to ensuringprocessing of cotton with leastcontamination for improvement in qualityand also for ensuring that processing ofcotton conforms to BIS norms. The CCIcontinued with this incentive schemeduring 2000-2001 and incentiveamounting to Rs. 1.11 lakhs were given toGinning and Pressing factories.The performance of the CCI, as perthe Memorandum of Understanding(MOU) for the year 2000-2001, was ratedas 'air'. The MOU for the year 2001-2002 was also signed with the Ministry inMarch, 2001.7. HANDICRATS & HANDLOOMSEXPORT CORPORATION (HHEC),NEW DELHI:The Handicrafts & Handlooms ExportCorporation of India Limited (HHEC) wasset up in June, 1962 with the twinobjectives of (I) Export promotion, and (ii)Trade development of handicrafts andHandloom products. HHEC is a tradinghouse in the export of handicrafts andHandloom products (includingHandknotted woolen carpet and readymade garments) besides undertakingexport of Gold and Silver Jewelry/Articles. In the year 1997-98, videGovernment notification No.80/97Customs dated 21st October, 1997,HHEC along with other ten agencies wasnominated for import of bullion underOGI, and sale in the domestic market. Inkeeping with its plan for diversificationHHEC also undertook import of mulberryraw silk.Turn Over:The Corporation achieved a highestever turnover of Rs. 426.07 crores during2000-01 surpassing the earlier highest of129

MINISTRY OF TEXTILESRs. 370.12 Crores recorded in the year1999-2000. Target for total turnover for2001-02 is Rs. 522.90 crore whichinclude export direct of Rs.71.60 crore.Working Results:During the year 2000-01 the totalincome increase to Rs. 30.42 crore asagainst Rs. 22.87 crore during theprevious year. The overheads during theyear 2000-01 increased to Rs. 25.01 croreas against Rs. 18.74 crore during previousyear. The net profit of Rs. 6.03 Crores is alsoa record, surpassing the previous recordprofit of Rs.4.01 Crores achieved in the year1999-2000. The company has proposed tothe Government enhanced divided of 20%on paid share capital amounting toRs.236.40 lakhs during 2000-01.Statistics:The summarized working results for thelast three years alongwith achievements for2000-2001 is given in table below:-1997-98 1998-99 1999-2000 2000-01Total Turnover 318.28 139.73 370.12 426.07Gross profit 2.42 1.87 4.13 7.21Net Profit 2.04 1.59 4.01 6.03Mulberry Raw Silk Imports:The import of Mulberry Raw Silk wasplaced in the canalized list vide Notificationno. 18 (RE- 990 1997-2002 dated 8th July,1999 and the Corporation was one of thedesignated agencies for imports. TheCorporation undertook import of MulberryRaw Silk and achieved sales of Rs.38.27crores during 2000-01, as compared toRs.177.71 Crores in the previous year. Theimports for mulberry raw silk has been againplaced in the restricted list of imports w.e.f.1.4.2000.Memorandum of Understanding:A memorandum of understanding for theyear 2000-01 duly approved by the HighPower Committee in the Department of PublicEnterprises was signed between Ministry ofTextiles and the Corporation on 22.03.2000.The performance evaluation Report for2000-01 MOU on the basis of provisionaldata has been submitted with Department ofpublic Enterprises and the Corporation hasbeen rated as "Excellent". The MOU for theyear 2001-02 has also been signed.Export Promotion and TradeDevelopment:The Corporation continued its exportpromotion and trade development activitiesduring the year by developing new samples,engaging professional designers andentering new areas of Handicrafts and wasable to generate business for new products innew markets. The Corporation alsointroduced e-commerce, which is givingpositive results and we are beginning toreceive orders. HHEC has undertakenpromotion of Indian Handicrafts andhandloom products in foreign marketsthrough improved design inputs. Wecontinue giving exposure to traditionalIndian, especially lesser known products in130

ANNUAL REPORT 2001-2002the world market by participating in a numberof international fairs on handicrafts,handlooms, ready to wear and carpets.Capital:The authorized share capital of HHECremained Rs. 20 Crores and paid up capitalis Rs. 11.82 Crores as on 31st March, 2001.8. NORTH EASTERN HANDICRATSAND HANDLOOMS DEVELOMENTCORPORATION (NEHHDC),GUWAHATI:The NEHHDC Ltd. was established in1977 as a Regional Nodal Agency for thepromotion and development of Handicraftsand Handlooms in the region. The areasidentified for undertaking promotional anddevelopmental activities includedinfrastructural and input support for research,design development, training of craftsmenand weavers, technical upgradation, supplyof raw materials through appropriatebudgetary support. The Corporation wasalso required to market the products outsidethe region and promote export.Activities:The main activity of the Corporation isdevelopmental covering different spheresmentioned above. Its secondary activity isrelated to marketing. Its marketing operationis being conducted through a net work of 6(six) emporia located in metropolitan andother cities. These emporia also organizeand participate in a variety of exhibitions,Handlooms and Handicrafts Expos, N.E.Crafts air, etc. The Corporation has alsobeen participating in I.I.T. ., other Tradeairs, and Gifts airs, etc. on regular basis.During 2001-2002, NEHHDC has beenconveyed administrative approval forconducting 56 exhibitions and 7 N.E. Craftsairs and participation in IIT 2001. T h eCorporation has organized 21 exhibitionssponsored by the Office of the DevelopmentCommissioner (Handicrafts) till 31 October,2001.The functioning of the Dye House wasstopped from 1st April, 1994 under thedirection of the Government of India . Inebruary 1997, the Government furtherordered winding up of the Dye House anddisposal of plant, machinery and other assetsby auction or leasing to other institution.However, complete winding up of the DyeHouse has not been possible in absence ofGovernment decisions on the treatment ofoutstanding secured and unsecured loansavailed in the setting up of the Dye House.Due to closure of the Dye House themanpower numbering 63 have beenrendered idle initially but have redeployed invarious showrooms and to the CC.However, Government has sanctioned fundsin March" 98 for a Cane & BambooCommon acility Center, which will facilitateduse of the Dye House building and alsoredeployment of about 25 staff of the DyeHouse. 20 of whom were trained at IPIRT,Bangalore, The Common facility centre hasstated its trial production from April 2000and is now fully operational. Orders forseveral tones of bamboo sticks have beenreceived. So far about 6 tonnes of bamboo131

MINISTRY OF TEXTILESsticks from one stick making machine hasbeen produced and training is beingimparted to 12 craftsmen of Barpeta andKamrup districts of Assam with whom it isproposed to have production tie ups at a laterstage.The authorized share capital of theCorporation is Rs. 2 Crores which is fully paidup and subscribed by the Government ofIndia. The Corporation has submitted aproposal to enhance the share capital toRs.15 Crores to accommodate enhancedequity capital after the conversion ofoutstanding loans/ interest into equity, grantor write off proposal under the capitalrestructuring plan submitted to Governmentof India. The Corporation has proposed toraise share capital from Rs. 2 Crores to Rs.10 crores and convert the entire Governmentloans into grant-in-aid. Consultancy work onthe restructuring of NEHHDC is also in goodprogress.Performance:The detailed financial performance overa period of five years from 1996-97 to2000-2001 is given in table 12.1:The net loss position is due to thefollowing:a) Increased overheads particularly insalaries on account of revision of payscale.b) Huge 'Idle works force of dye-house.c) Discontinuation of promotional anddevelopment reimbursement schemes.(The Corporation has been shifted underthe administrative charge of Deptt. forDivision of NER.)9. CENTRAL COTTAGE INDUSTRIESCORPORATION O INDIA (CCIC),NEW DELHI:The Central Cottage Industries Emporiumwas established in Delhi in the year 1952under the Management of the Indian CooperativeUnion and was later on taken overby the Central Cottage Industries Associationin 1964. The Central Cottage IndustriesCorporation of India was incorporated in4.2.1976 as a wholly owned subsidiary of theHandicrafts and handicrafts and HandloomsExport Corporation of India Ltd. However,with effect from 27.3.1991, CCIC hasceased to be a subsidiary of HHEC of IndiaLtd. and has been brought under theadministrative control of the Ministry ofTextiles.The main objective of the CCIC is toact as dealer, exporter, Manufacturer andagent of Indian quality handicrafts andHandlooms and to develop Markets forthese products in India and abroad.However, it also engages itself in exportTable No. 12.1(Rs. in lakhs)1996-1997 1997-1998 1998-1999 1999-2000 2000-2001Turnover 589.87 325.54 3000.70 466.48 551.59Gross Profit 136.07 89.39 84.07 117.49 148.37Total Loss 61.93 139.23 140.86 165.00 169.96132

ANNUAL REPORT 2001-2002activities and is eligible export house. TheCorporation has five showrooms Viz; atDelhi, Calcutta, Mumbai, Bangalore andChennai. besides this, the Corporationhas its own production centre at NOIDAfor manufacture of readymade garmentsand accessories. The production centrealso has a printing unit where Sarees,fabrics etc. are printed.10. NATIONAL HANDLOOMDEVELOPMENT CORPORATION(NHDC) Ltd. LUCKNOW:National Handloom DevelopmentCorporation (NHDC) Ltd., Lucknowwas set up in ebruary, 1983 by theGovernment of India as anautonomous body under theCompanies Act, 1956, in pursuance ofthe imperative need for a NationalLevel Agency to assist the Governmentin the speedy development of theHandloom Sector by co-ordinating theprocurement and supply of inputs atreasonable prices, augmenting themarketing efforts of State Handloomagencies and initiating developmentalactivities for upgrading the technologyin the handloom sector and improvingtheir productivity.The main objectives of theCorporation are :-1. To carry on the business of all types ofyarn for the benefit of the handloomsector.Shri Kashiram Rana, Hon’ble Minister of Textiles at an inaugural function alongwith Smt. Tinoo Joshi, DC(HC) and ShriDurgesh Shankar, MD CCIC133

MINISTRY OF TEXTILES2. To organise supply of quality dyesand related materials needed by thehandloom sector.3. To promote marketing of handloomfabrics including exports.4. To aid, assist and implement theprojects connected with theproduction of handloom fabricsincluding taking up modernizationprogramme, introduction ofappropriate technology for thehandloom sector.The total authorized capital ofNHDC Ltd. is Rs. 20.00 crore and itspaid up capital was Rs. 17.00 croreupto the year 2000-01. During the year2001-2002, a further sum of Rs.1.00crore has been released to NHDC asequity participation.The turn over and profit account ofthe Corporation for the last three yearshave been as under:-(Rs. in lakhs)Year Turnover Profit1998-1999 18545.73 75.711999-2000 21697.48 92.082000-2001 19470.66 33.00During the year 2000-2001, theCorporation has paid dividend of a sumof Rs.10.20 lakh to the Government ofIndia.The NHDC supplied 167.90 lakh kg.of yarn of the value of Rs. 17302.11 lakh,and 10.53 lakh kg. of dyes and chemicalsof the value of Rs. 1711.51 lakh duringthe year 2000-2001 to user agencies.During the current year 2001-2002,134.49 lakh kg. of yarn of the value ofthe Rs.13276.50 lakh and 5.63 lakh kg.of dyes and chemicals of the value ofRs.1121.76 lakh were supplied to the userorganisations upto December 31, 2001.134