17 January 2022, Mumbai:

A likely meeting on Monday between the textile ministry and industry stakeholders over rising cotton rates has left the farmers in Vidarbha anxious.

With smartphones being used even in the hinterland, media reports of Monday's meeting have been quickly shared in villages. As cotton growers of the region now waiting for more rs on the meet, this has also left them miffed.

The textile industry has been demanding measures to reduce cotton rates, which have touched Rs10,000 a quintal and cut in import duty on the commodity.

"A number of farmers have received the news about the meeting on mobile. As we are following the news for the final outcome, this has left the farmers disappointed and many want to register their protest," said Nitin Khadse from Jalka village in Yavatmal-infamous for the agrarian crisis.

"For years, cotton prices have been fetching minimum support price (MSP) or slightly below it. Now, if the rates are high for a single year, the industry is seeking government intervention, he said.

TOI (The news article has not been edited by DFU Publications staff)

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13 January 2022, Mumbai:

Piyush Goyal, Union Minister of Commerce and Industry and Textiles, has urged start-ups to assist micro-entrepreneurs in rural regions in using technology to build their companies and encouraging weavers and craftsmen, among others, to sell their products on digital platforms.

"Startups will help India move from an assembly economy, particularly in the digital realm, to a knowledge-based economy," he stated via video conference at the 16th India Digital Summit in 2022. Technology has erased borders and obstacles in this digital age, and it has removed the restrictions of our businesses from our brains."

He stated that India has been the world's favourite start-up location in the previous year, and that start-ups are the agents of change as well as the pillars for building India Atma Nirbhar.

"The Startup India Mission has been running for six years. With over 60,000 start-ups registered at DPIIT, we have already generated 82 Unicorns in six years, the world's third highest number of Unicorns.

With the rising recognition of our skilled people throughout the world, and investors queuing up from all over the world to come and join in this start-up ecosystem revolution," he said, adding that our start-ups produced more than 6 lakh employment in only three years, from 2018 to 21. Indeed, almost 2 lakh jobs were generated in the previous year alone.

Separately, the Minister will meet with the presidents of the country's leading business and industry organisations to solicit their thoughts and comments on how to maintain the country's rapid economic recovery and strong growth rates.

He urged industrial groups to pay MSMEs in advance in order to ensure their sustainability and create employment and growth.

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A variety of factors have contributed to India's recent trade performance, India has a variety of factors posing cost disadvantages (for example, power costs 30 to 40 percent more in India than it does in Bangladesh).

ET

17 January 2022, Mumbai:

Operational guidelines for the PM Mega Integrated Textile Region and Apparel (PM MITRA) parks project have been announced by the Ministry of Textiles (MoT).

The project, which has a budget of Rs. 4,445 crore, includes administrative expenses of Rs. 30 crores over a seven-year period, from 2027 to 2028.

It intends to boost the Indian textile sector by enabling the scale of operations, lowering logistical costs by bringing the full value chain together in one location, attracting investment, creating jobs, and increasing export potential.

According to the rules, the State Government would transfer land to the Special Purpose Vehicle (SPV) at a nominal price, and the SPV will be a legal entity with the State Government owning 51 percent of the equity and the Central Government owning 49 percent.

A Competitive Incentive Support (CIS) provision of Rs. 300 crore per park has been made to encourage manufacturing units to establish themselves early in PM MITRA Park.

This incentive will be given to manufacturing units up to 3% of total sales turnover to the unit built in the park in order to cut costs and partially offset disadvantages.

The CIS will have a limited number of spots available and will be given out on a first-come, first-served basis. The incentives will only be accessible to manufacturers who are not currently participating in the Production Linked Incentive (PLI) for Textiles scheme.

For one anchor investor company with an investment of Rs. 300 crore or more in its unit in these parks, the incentive cap will be Rs. 10 crores per year, with a maximum cap of Rs. 30 crores.

Similarly, the incentive cap is Rs. 5 crores per year, with a maximum cap of Rs. 15 crores for one investor company with Rs. 100-300 crore investment.

Other investment companies and tenant companies will have a cap of Rs. 1 crore per year on incentive and a maximum cap of Rs. 3 crore on incentive, but they must employ 100 people or more.

Gujarat, Tamil Nadu, Rajasthan, Telangana, MP, Bihar, and Andhra Pradesh are all pushing for a park, and several trade organisations from these states have made representations.

The distance from the nearest highway to the site, the distance from air cargo, the distance from the airport/railhead, the distance from the seaport/inland waterway/dedicated freight corridor, and the distance from the multimodal logistic park/ICD/CFS will all be given a 25% weighting.

Distance from an existing textile cluster, availability of raw resources and skilled labour suited for the textiles sector, and availability of skill development institutes/research associations/institutes will all be given a 25% weighting.

A 20% weighting is given to the availability of a good quality power source on-site to enable the development and operation of the park, as well as the certainty of a power distribution license for the Master Developer for the parking area and approval for open access power sourcing.

The Park SPV will receive Development Capital Support (DCS) in the form of a grant in aid (Capital) from the Central Government. According to the construction phasing, the DCS for Greenfield Park will be Rs. 300 crore and for Brownfield Park, Rs. 100 crore.

Phase 1 would have a 25-year concession period, while phase 2 will cost Rs. 200 crores for Greenfield Park and Rs. 100 crore for Brownfield Park. DCS is a tool that aids in the development of core infrastructure.

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13 January 2022, Mumbai:

Growth signals an economic rebound

Textile sector has continuously maintained trade surplus with exports manifold higher than imports. In FY 2020-21 there was a deceleration in textile exports due to pandemic disrupting the supply chain and demand.

However, signs of recovery are visible in 2021-22. During April-December, 2021 the total Textiles & Apparel including Handicrafts exports was US$ 29.8 billion as compared to US$ 21.2 billion for the same period last year.

This implies robust growth of approximately 41% over last year. Growth signals an economic rebound.

Even compared to pre-pandemic year i.e. 2019-20 export for textile sector (Textiles & Apparel including Handicrafts) increased by 14.6% from April- December 2021 as compared to April-December 2019.

Textiles exhibited an increase in export of 31%, Cotton Yarn/ Fabrics/ Made-ups, Handloom products etc. exhibited an increase of 43% and Jute products exhibited an increase of 33% from April- December 2021 as compared to April-December, 2019.

Government has set the target of $44 billion for Textiles & Apparel including Handicrafts and approximately 68% of annual target has already been achieved. The last quarter of FY always has higher activity than the earlier quarters. Hence industry is hopeful that targets will be duly met.

PIB (The news article has not been edited by DFU Publications staff)

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11 January 2022, Mumbai:

Both bids are conditional; the firm offers that RP asks bidders to submit unconditional resolution plans.

Race For Bankrupt Co
The marginal difference between offers by Reliance-ACRE and Welspun.

Reliance Industries Ltd (RIL) and Welspun are the leading contenders to acquire bankrupt Sintex Industries, said people with knowledge of the matter. RIL, in partnership with Assets Care & Reconstruction Enterprise (ACRE), has offered a 2,863 crore resolution plan that includes 10% equity to lenders, they said.

Reliance Industries-ACRE and Welspun Group unit Easygo Textile Pvt Ltd are the two highest bidders among the four-firm offers that lenders have received for the textile-cum-yarn making company.

"There is a marginal difference between the offers made by Reliance Industries-ACRE team and Welspun Group," one of the persons said. "Both are highest but conditional. It is difficult to assess which of the two plans is better."

Resolution professional Pinakin Shah has asked the two highest bidders to resubmit revised unconditional resolution plans said the people cited above.

The RIL offer includes payment of 2,280 crores to financial creditors, equity infusion of 500 crores for working capital requirements, and an 83 crores payment to employees and trade creditors, one of the persons said.

RP has admitted 37,534.6 cr claims from 27 financial creditors.

SOURCE: ET dt 11-02-2022

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15 January 2022, Mumbai:

The Ministry of Textiles (MoT) may introduce a new programme to replace the Amended Technology Upgradation Fund (ATUF) scheme, which is set to expire on March 31, 2022.

In this respect, a virtual conference of senior MoT officials and industry leaders from around the country was held. The new programme might be dubbed the Textile Technology Development Program. Previously, the ATUF plan provided a 5 to 7% interest subsidy for 5 years on most knitting, weaving, and technical textile machines.

According to reports, under the new programme, there will be more help now, maybe up to 25% in one go.

"There might be a maximum grant of 25% with a maximum limit of Rs. 10 to Rs. 25 crore for each unit, and there could be a restriction on the units' desire to profit from the plan," said an industry person in attendance.

He also stated that the funding for processing facilities and ETPs will be greater in proportion. It might be 25% with a limit of Rs. 10 crore for garmenting projects. Industry leaders demanded that additional funds be made available and that the maximum number of units prepared to invest be lifted.

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11 January 2022, Mumbai:

The exhibition of India and Europe made textile mega hi-tech weaving machines and ancillaries commenced at the Surat International Exhibition and Convention centre at Sarsana on January 8.

The three-day Surat International Textile Expo (SITEX) 2022 that concluded on Monday gathered business worth Rs 250 crore, according to the Southern Gujarat Chamber of Commerce and Industry (SGCCI), which organised the event along with the Southern Gujarat Chamber Trader and Industrial Development Council.

13 January 2022, Mumbai:

Welspun India Limited, the world's largest home furnishings maker, has received the National Water Award from the Ministry of Jal Shakti's Department of Water Resources, River Development, and Ganga Rejuvenation.

KEY HIGHLIGHTS

• In the Best Industry Category, the firm took first place
• Award is given in appreciation of Welspun's cutting-edge sewage treatment facility 
• The 40 MLD sewage treatment facility is one of the first in India

In the Best Industry Category, the firm took first place. The award was given in appreciation of Welspun's cutting-edge sewage treatment facility in the drought-prone Kutch district's social and environmental effect.

The 40 MLD sewage treatment facility is one of the first in India to deploy cutting-edge wastewater treatment technology to reuse urban sewage water into high-quality clean water for industrial usage.

This allowed the corporation to achieve zero freshwater consumption for industrial purposes at its Anjar manufacturing plant, while also reducing the pollution produced by the flow of untreated municipal sewage into the sea, which had a negative impact on the environment and community health.

The facility has also benefited the local farming population, as the Narmada river's freshwater, which was formerly utilised for industrial reasons, is now used for agricultural purposes. "Welspun India has always been devoted to sustainability, environmental awareness, and community welfare as a responsible corporate citizen." 

Our cutting-edge sewage treatment facility in Anjar was built on the basis of these three guiding principles. We are happy that the Ministry of Jal Shakti has recognised our efforts to decrease reliance on freshwater sources for industrial uses. Welspun India Limited's Dipali Goenka, Jt. MD & CEO, stated, "It just drives us to lift the bar even higher."

The prize for Best State went to Uttar Pradesh, while the award for "Best Urban Local Body" went to Vapi Urban Local Body in Gujarat. Kolkata's ITC Limited was named "Best Industry for CSR Activities."

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11 January 2022, Mumbai:

The MCX, a key commodities exchange, has stated that pressure groups in the cotton value chain are making "irrational" demands for the suspension of futures trade in the commodity on its platform, despite fundamentals supporting high pricing.

A prohibition on cotton futures would be counterproductive since, for the first time in many years, farmers in India are benefiting from strong prices driven by fundamentals. MCX released a statement expressing astonishment at the efforts of certain pressure groups to have the cotton futures contract on the exchange suspended, stating that India is a net exporter of cotton and that prices are increasing in lockstep with world prices. Cotton is also not on the list of essential goods, thus any interruption in supply might have unfavourable economic consequences.

In an effort to keep prices in check, the government banned future trade in seven agricultural commodities, including wheat, moong dal, and soybean, for one year in December 2021.

"Their claims are without substance and are based on no actual data." The goal of such groups is to make accurate pricing inaccessible to farmers by not enabling markets to work, and to profit from the opacity that would ensue from dysfunctional markets."

MCX expressed his thoughts. It said that pressure groups are 'lobbying for its suspension at the expense of farmers, who had reaped the benefits of increased cotton prices following years of drought.

Those who are unhedged are the ones who are exposed to increased price risk. These participants' dwindling profit margins have prompted them to demand suspension, according to the report. The cotton price gain is supported by fundamentals, according to MCX, since market players forecast lower output than the Cotton Association of India (CAI) estimates for the 2021-22 marketing year (October-September).

Cotton output for the current year is expected to be 360.13 lakh bales, with an opening stock of 75 lakh bales weighing 170 kilogrammes apiece as of November 20, 2021, according to CAI.

However, owing to unseasonal rainfall in main producing areas in October and November, market players predict real cotton output for 2021-22 to be 330-335 lakh bales, according to the report.

The unseasonal rains, according to MCX, have exacerbated quality worries, which is pushing up demand for premium cotton. Farmers are also said to be stockpiling high-quality cotton in expectation of higher prices for their crop. The supply is further harmed by reduced opening stock, which declined drastically to 75 lakh bales in 2021-22 compared to 125 lakh bales in 2020-21, owing to increased export demand due to rising worldwide consumption.

The arrival of the current cotton harvest between October and December 2021 was lower by 37%, according to MCX. However, prices began to fall in November 2021, when mandis arrivals improved.

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