Dark days loom for powerlooms

Even as the powerloom sector in Surat is looking towards higher business volumes once the quota-regime is over, lack of modernisation might be a major obstacle.

Surat is the biggest centres of textile industry in the country. It is home to over six lakh powerlooms, which manufacture three crore metres of grey fabric each day.

"The biggest factor that will hurt the powerloom sector of Surat is lack of modernisation. Out of six lakh powerlooms in the city, more than 80 per cent are outdated and obsolete. The result is that the grey fabric does not have very good quality. This type of grey will have no buyers in the post-quota regime," Rakesh Patel, a powerloom unit owner of Pandesara GIDC, said.

"The local weavers have a mindset that if they can earn with the old powerlooms, there is no need to alter the machines. Though many powerloom owners have upgraded their machinery, the industry on the whole has not understood the importance of modernisation," he said, adding, "Survival would be very difficult for the local powerloom industry after the quotas are lifted."

The powerloom sector is bound to face problems because it has failed to take advantage of various government schemes for modernisation.

"The centre has launched Technology Upgradation Fund (TUF) scheme for the textile industry. The government is providing interest subsidy, upfront subsidy and capital subsidy under this scheme for modernisation. The scheme is very attractive, but it has drawn lacklustre response in Surat. The result is not up to the desired level," an official of the Powerloom Service Centre, said on the condition of anonymity.

"Majority of the powerlooms are operational in sheds, which do not have proper space to install modern machinery. The centre has launched a group work-shed scheme for the decentralised powerloom sector, having provision of 25 per cent subsidy of the shed construction cost, but the sector has failed to avail benefits of this scheme," the official said.

The PSC official also said that the powerloom sector is not too keen on learning and improving.

"With the aim of providing scientific training to weavers and workers, the centre has started powerloom service centres in all important powerloom clusters of the country. Basic training is provided free of cost at these centres, but very few weavers or workers have approached us for training," he rued.

The high power cost will also cause troubles for the powerloom industry. "The power tariff for the powerloom sector of Surat is the highest in the country. The industry is at a disadvantage due to this, but there is no point raising hue & cry over the issue. The powerloom owners can reduce power cost by proper maintenance of machines, using standard quality accessories & electric motors, and by making maximum utilisation of the machine," he said.

There are several other aspects, such as poor quality raw material, unskilled work-force, and pricing, that could cause problems for the powerloom sector in the post-quota regime, but it would certainly not be wrong to say that the powerloom owners themselves are responsible for this position.