| Large-scale policy and other changes may have to take place to make viable a number of organisations, including the Jute Corporation of India, operating under the Union textiles ministry, if a discussion paper on comprehensive jute policy is any indication.
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| The offices of JCI, Jute Commissioner, Jute manufactures development council and national centre for jute diversification required a large-scale functional reorganisation to remain viable and maintain their autonomous structure in the coming days, according to the paper, a copy of which is with PTI.
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| It pointed out that JCI needs to increase its commercial operation or turnover as a trading organisation substantially in each jute season to become viable.
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| Apart from increasing turnover, the JCI was also required to correct the methodology adopted for claiming compensation for the loss on account of MSP. “The methodology adopted by JCI for claiming compensation for the loss on accounts of MSP is faulty as interest in government loan net of subsidy paid to the Corporation is added to the loss.”
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| The paper said that JCI needed Rs 30-35 crore for its establishment and salary expenses and to cover this, it must have a turnover of Rs 1,500 to Rs 1,800 crore, while at no time in its history, the JCI has exceeded the turnover of Rs 250 crore.
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| In order to be viable, it should reduce its expenses on staff strength and administration to a level of Rs 20 crore and also target a turnover of at least Rs 1,000 crore.
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| “The JCI should work out a time frame to adopt modern finance management practices and prepare the activity-wise losses pertaining to MSP and non-MSP operations,” the paper said.
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| About JC, it said that there was need to analyse the present organisational structure keeping in view its effectiveness to motivate its employees.
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| “There is a requirement for structural and process re-engineering at JC’s office, keeping in view the latest development in informational and communication technolgoy sector.
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| About JMDC and NCJD, the paper observed overlapping in activities of both as far as promotion of exports was concerned and also in case of other activities for promotion of jute manufacturers by increasing efficiency and productivity in the industry. “Technically, any activity undertaken by jmdc can also be undertaken by the jcjd,” it observed.
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| “In view of the overlapping functions of ncjd and jmdc, and the recommendations of expenditure reforms commission, it will be appropriate to reconsider the respective roles of these two organisations,” the paper prepared by Roul said.
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| In this context, there was also the need to debate whether the industry needed a specialized and professional body in the form of a Jute Export Promotion Council (jepc).
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| However, financing export promotion will be a fit case for jmdc, it said.
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| The paper said that financing and promotion of exports were not the same as executing actual export promotion activities, which might be left to a professional body, solely focussed on such aspects. |
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