TN govt offers two ways out for Tirupur units

In order to find a solution to the Tirupur dying units issue, Tamil Nadu government has decided to lend Rs 200 crore to the units, with zero interest. Besides, the government would also pay a compensation of Rs 18 crore to farmers who were affected by the pollution caused by the dying units.

The government formed a committee, consisting of members from the Pollution Board, representatives from the state government and the industry to study on nano technology adopted in Gujarat.

In a statement, chief minister J Jayalalithaa said the units in Tirupur would have to select one of the two methods treatment of effluents by nano-technology and the brine solution method. To adopt the system, it was estimated that each unit would require Rs 10 crore.

“To support this investment, the government has decided to give Rs 200 crore as credit, without interest,” the chief minister said in a statement.

For studying the nano-technology method of treating effluents, the state government has decided to send an expert delegation to Bharuch district in Gujarat, where some of the dyeing units are already using it.

The government has also said that it will soon disburse the compensation of Rs 18.3 crore, which is to be given to the affected farmers who have their fields along the banks of the Noyyal river.

In January this year, the Madras High Court had directed all the dying units, which are operating at Tirupur, to close down. This was in response to a petition filed by NGOs and farmers against the units for polluting water of Noyyal river in Tirupur.

According to K Krishnan, general secretary, Tirupur Dyes and Chemicals Association, at Tirupur there are 720 units, operating within 10 km radiusof Tirupur. These units employ 50,000-60,000 people directly and around 600,000 people indirectly, who are involved in 40 different operations.

This had impacted the textile units in Tirupur, which reported loss of around Rs 3,500 crore during the current fiscal, due to the closure of dyeing units in the town. Industry representatives said that during the last three months of the current fiscal, the industry has lost around Rs 1,000 crore. Besides, the industry's NPA to banks have already touched Rs 1,500 crore.