Weavers against power incentives withdrawal

The future for the powerloom industry remains uncertain with the state government planning to recover relief that has been granted to the weavers from last five years.

Southern Gujarat Chamber of Commerce and Industry (SGCCI) and Federation of Gujarat Weaver Association (FOGWA), along with other trade bodies have prepared a draft for the meeting at Gandhinagar on June 23.

In 2000, the powerloom owners of the state went on indefinite strike demanding 30 per cent relief in power tariff. The 50-day strike was in opposition to the concession of power supply provided in Maharashtra and Tamil Nadu.

At that time Chief Minister Keshubhai Patel and the state commerce minister Suresh Mehta came to a consensus with the powerloom traders and gave 30 percent deferment instead of giving relief. The deferment started on August 2000 and lasted till November 2001.

In 2003- 2004 a provision of Rs 32.60 crore was given to the powerloom industry by the government. "The government provided all the payments of Torrent and GEB powerhouses," says President of FOGWA Manubhai.

"The government also came up with a Tariff Commission which was supposed to take decision on the relief of power supply," he said.

After 16 months, the newly appointed government brought up the debate on the recovery of power relief with the tariff commission asserting that the state government doesn't give relief to the individual industry of the state, he further said.

"The powerloom industry is in no state of repaying 30 per cent of power relief as many traders and manufactures have left the business due to loss,'' said a leading weaver.

"Many traders who owned the powerloom industry took the profit of 30 percent relief in the power supply and sold the factories to another weaver,'' he said. He further added, "The later weavers or manufacturers had to bear the brunt of the power relief.''

"In Maharashtra per month the cost of power supply is Rs 185 making average unit to 25 paise per unit. The cost is very less than the rate of the power supply in Gujarat where the average cost is around Rs 4-5 per unit'' says Manubhai.

However, the traders feel that their meeting with state government will bear positive outcome.

"We have made a draft which is going to be discussed on June 23 and we are positive of the outcome of the meeting," says Praveen Nanavati, chairman and president of South Gujarat Chamber of Commerce and Industry.