The Centre is finally contemplating an amendment to a stringent regulation which demands spinning mills to produce a fixed quantity of hank yarn for the handloom sector. The mills face a legal action if not met this demand.
S B Mohapatra, secretary, ministry of textiles, said the hank yarn obligation imposed on spinning mills may be scrapped.
This is being thought of due to the reduced demand for hank yarn on account of closure of several handlooms in the country.
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Even the state-run National Textile Corporation (NTC), which produce hank yarn for handloom sector are suffering huge losses, Mohapatra pointed out.
He said the mills were questioning the need of continuing with a regulation which is redundant in the present context.