Govt approves plan to restructure Jute Corporation of India

The government has approved a plan to restructure Jute Corporation of India to enhance its efficiency and capacity to handle huge quantity of jute to be procured from growers in the country, Parliament was informed today.
"Based on the study done by Deloitte Touche Tohmatsu India Pvt Ltd, a restructuring plan has been finalised and approved with the objectives of reducing fixed costs and implementing methods of alternative revenue generation.
"The restructuring plan includes outsourcing of Department Purchase Centre (DPC) activities, rationalisation of manpower and merger/closure of unviable DPCs," Union Textiles Minister Santosh Gangwar said in a written reply to Lok Sabha.

The Jute Corporation of India Limited was set up in 1971 as an official agency by the government with the aim to provide minimum support price (MSP) to jute cultivators and also work as a helping hand in the raw jute sector.
Besides, Gangwar said the government has approved annual grants of Rs 55 crore for 2014-15, Rs 52.11 crore for 2015-16 and Rs 49.38 crore for 2016-17 and Rs 46.78 crore for 2017-18, respectively to Jute Corporation of India for maintaining its infrastructure for conducting MSP operations.