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Thread: Ministry of Textiles - Jute Sector

  1. #21
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    Thumbs up Jute Sector - Machinery Development.

    Jute Sector

    MINI MISSION –IV
    2. Machinery Development.

    One of the main bottleneck for modernization of jute industry is lack of availability of new technology machines for jute fiber. Under this scheme, Research and Development efforts as well as the transfer of technology at each stage of processing is to be intensified and appropriate activities taken up.

    For the development of new technology and high yielding machinery, a Machinery Development Centre (CJMD) would be established through PPP model. In addition, specific machinery development projects are being funded @ 75%, to be taken up through the proposed CJMD, indigenous machinery manufacturers as well as research institutions who have the credibility and required infrastructure. The selection of Private Partner and establishment of SPV had been completed and the process of establishment of CJMD has started as per programme schedule. Under the scheme 5 machines involved in core process of jute goods production have been identified for development. Development of 2 machinery have already commenced.

  2. #22
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    Thumbs up Jute Sector - Productivity Improvement & TQM Facilitation.

    Jute Sector

    MINI MISSION –IV

    3. Productivity Improvement & TQM Facilitation.

    This scheme provides an integrated and cohesive approach for supporting Jute Machinery Development Programmes under Mini-Mission IV of JTM and thereby considers timebound proposals for financial support. Following studies are planned in this scheme.

    • Total Quality Management
    • Energy Management
    • Waste Management
    • Maintenance Management
    • Work Study & Ergonomics

    As per decisions of the experts, all the five studies will be conducted in an integrated manner and such studies will be undertaken initially in six jute mills covering geographical spread and different gradation of the mills. Four agencies of national repute have been selected for undertaking the studies, which will be replicated in other jute mills. The participating jute mills will bear the cost of implementation of the prescriptions of the agencies.

  3. #23
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    Thumbs up Jute Sector - Acquisition Of Machinery And Plant (Subsidy Component).

    Jute Sector

    MINI MISSION –IV

    4. Acquisition Of Machinery And Plant (Subsidy Component).

    Under this scheme, the jute industry is being supported to adopt new technology machinery as required for production of jute based products, conventional and non-conventional like foodgrade / odourless products, technical and industrial textiles, etc. The adoption of such new machinery will enable the Indian Jute Industry to cater to the demand of global market in terms of cost and quality in the coming years.

    Various items of machinery and equipment, such as, Jute spreader machine, Spinning Preparatory System, Intersecting Gill, Finisher Drawing Frame, Apron/Slip Draft Flyer Spinning Frames, Ring Spinning Frames, Traditional hessian looms, High Speed Flexible of Rapier looms and Sulzer (Projectile) and Rigid Rapier (Denier)/Flexible Rapier (Sulzer) loom will be acquired and installed by identified mills/units. Support will be provided for the same @ 20% Capital Subsidy. The entrepreneurs are free to choose between this Scheme or the interest subsidy scheme under the TUFS.

    The maximum subsidy available in this scheme is Rs.75 lakhs in case of existing mills,which may be enhanced to Rs.1 crores for North Eastern States and Rs.1 crore for altogether new mills. Under the scheme, 36 cases have been settled and subsidy of Rs.728.26 lakhs have been released facilitating investment of Rs.3644.09 lakhs in the jute industry for modernization and upgradation during the period 1.4.2008 to 31.03.2009.

  4. #24
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    Thumbs up Jute Sector - Scheme For Promotion of Jute Diversification.

    Jute Sector

    MINI MISSION –IV

    B. Scheme For Promotion Of Jute Diversification :–

    1. Design & Development of Jute Diversified Products.

    NCJD has been operating a scheme on design and product development of jute diversified products for the last few years. It has been observed that in order to make jute products more acceptable to consumers in different sectors, it is essential to incorporate innovative designs and also add newer product range for diverse application. It is contemplated that it would be relevant to explore the characteristics of basic jute products, as that will help development of new products and new application areas for jute. The subject scheme also envisages to explore the use of jute yarn in Handloom sector, where the scope of developing new design for fabric and other woven products is very high. The scheme covers areas like designing & developing jute fabric on handloom, for diversification and end uses. Similarly, research on jute composites could open up new application areas in the field of packaging like boxes, containers and also as a cushioning media. Altogether, 19 R&D studies have been commissioned at a total project cost of Rs.911.76 lakhs for product development, quality improvement and promotion of non-conventional value added jute diversified products.

  5. #25
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    Thumbs up Jute Sector - Scheme For Helping The NGOs And Women Self Help Groups (WSHGs).

    Jute Sector

    MINI MISSION –IV

    2. Scheme For Helping The NGOs And Women Self Help Groups (WSHGs)

    NCJDs assistance to voluntary Organisation has been very effective. Such organizations and those comprising of small and tiny entrepreneurs could effectively contribute in mobilising jute activity, especially in rural areas. Unemployed youth and women folk could very conveniently adapt to such simple technologies that are required to produce jute-diversified products (JDP). The technology dissemination activity is taken up in such a manner so as to make it more effective by engaging technical personnel. In addition to the above inputs, the scheme includes a provision for matching finance for machinery assistance. Such assistance will create an environment, which will be conducive to the growth of voluntary sector. Total 22 NGOs have been engaged to undertake various promotional activities like 9 Area Surveys, 38 Awareness Workshops, 108 basic training programmes, etc. which have led to the development of 3300 women entrepreneurs. 255 potential WSHGs have been identified. Out of these, 228 groups with 2280 artisans have been provided with basic trainings with tool kits. Initial and startup raw materials have been provided during the year 2008-09 to all WSHGs developed. Out of them, around 1000 Nos. were since imparted further advanced training to upgrade their manufacturing capabilities. The WSHGs so developed were also assisted in participation in different trade fairs.

  6. #26
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    Thumbs up Jute Sector - Scheme For Promotion Of Jute Diversification.

    Jute Sector

    MINI MISSION –IV

    3. Scheme For Promotion Of Jute Diversification.

    The old schemes of the NCJD viz.Jute Service Centre Scheme , Jute Raw Material Bank Scheme, Design/ Product Development Scheme, Market Support Scheme, Jute Entrepreneur Assistance Scheme and the Schemes for the North East Region have been merged and renamed as the “Scheme for Promotion of Jute Diversified Products”.

    The objective of the scheme is to establish the competitive environmental advantage of jute globally as well as boost the sale of jute goods by 50% globally and increase the share of JDPs to around 20% during the JTM period. In order to achieve the objective as given in the National Jute Policy 2005 an integrated approach is envisaged and conceptualized with emphasis on following key elements:

    Developmental Schemes Jute Service Centre Scheme
    Input Related Scheme Jute Raw Material Bank Scheme
    Marketing Schemes Market Promotion Schemes And
    Campaigns For Jute Diversified Products

    During the period 1.4.2008 to 31.03.2009, 25 Jute Service Centres and 7 Jute Service Extension Centres have been set up to help the newly developed entrepreneurs. Total 37 Jute Raw Material Banks have been set up to provide raw material support to the entrepreneurs engaged in the jute diversification activities in remote areas. 401 activities have been conducted by the JSCs and 1640 MT of Raw Materials have been sold through the JRMBs. Participation has been organized in 18 state/district/village/national level fairs for extending marketing support to the jute entrepreneurs. Besides, No. International Fair was also organized. JSCs also organized 41 Buyer-Seller Meet for the artisans developed to provide direct market linkages with the consumers/end-users.

  7. #27
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    Thumbs up Jute Sector - Scheme For Setting Up Of Jute Parks For The Diversified Sector.

    Jute Sector

    MINI MISSION –IV

    4. Scheme For Setting Up Of Jute Parks For The Diversified Sector.

    This scheme aims at providing entrepreneurs with support facilities similar to those available in Export Processing Zones. The aim of the Scheme is to attract entrepreneurs/units investing in new small jute mills/spinning units/weaving units with a view to generate employment/upgrade technology to optimize exports based on value addition. The scheme would be executed through PPP mode on the lines of SITP scheme of Ministry of textiles. The subsidy available under this scheme for establishment of Jute park is 40%, subject to a maximum of Rs 7.5 Crored for NE states and Rs. 5 Crores for other states. In principle approval has been accorded to 4 Jute Parks viz. Rajasthan Jute Fab Park [Jaipur], Shaktigarh Jute Park [Burdwan, West Bengal] and two under WBIIDC at Rejinagar/Murshidabad and Coochbehar. SPVs have been formed in all cases. Out of these, all the formalities in respect of the jute park at Chakchaka, Coochbehar has been completed and 1st instalment of fund released The other procedural matters are under process to ensure the awarding of the remaining 2 Jute Parks at West Bengal and 1 at Rajasthan shortly. 2 more applications for establishment of Jute Parks in West Bengal are under active consideration.

  8. #28
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    Thumbs up Jute Sector - Programmes for North East Region.

    Jute Sector

    MINI MISSION –IV

    C. Programmes for North East Region.

    10 % of the Jute Technology Mission budget has been reserved for executing the JTM schemes in the North East Region covering Assam, Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim and Tripura.

  9. #29
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    Thumbs up Jute Sector - NATIONAL JUTE MANUFACTURES CORPORATION LIMITED - Production, Productivity & performance.

    Jute Sector


    NATIONAL JUTE MANUFACTURES CORPORATION LIMITED

    National Jute Manufactures Corporation Limited (NJMC) was incorporated in 1980. There are six nationalized jute mills (viz. National, Kinnison, Khardah, Alexandra, Union & RBHM) under its management of which five are located in and around Kolkata and one at Katihar, Bihar. NJMC is the only Public Sector Undertaking engaged in Jute goods manufacture. The Mills produce traditional jute goods like Hessian, Sacking, Jute Twine and also Carpet Backing Cloth (CBC).

    Production, Productivity & performance:

    At the time of nationalization production of the mills under NJMC was around 1.10 Lac tons per annum, which went up to 1.33 Lac tons in the year 1985-86. However, there is continuous decline in production thereafter. During the year 2004-05, 6 (Six) units of NJMC are not in operation due to disconnection of Power supply by CESC / BSEB for non-payment of their bills owing to working capital crunch. The trend of production, productivity & performance is tabulated below :

    For the year
    1.3 PHYSICAL 2005-2006 2006-2007 2007-2008 2008-09
    (upto Sept. '08)
    2008-09
    (Estimated)
    Production (in MT) ---- ---- ---- ---- ----
    Prodn./day (MT) ---- ---- ---- ---- ----
    FINANCIAL RESULTS : Rs. In Lac Rs. In Lac Rs. In Lac Rs. In Lac Rs. In Lac
    Sale Value of Production ---- ---- ---- ---- ----
    Other Income 261 5230 1153 100 200
    TOTAL 261 5230 1153 100 200
    Cost of Production :
    Jute Cost ---- ---- ---- ---- ----
    Salaries & Wages 11612 11123 3039 900 1500
    VRS Expenditure ---- 35639 ---- ---- 21500
    Stores & Spares ---- ---- ----
    Other Expenses 951 1227 1284 376 548
    Interest (Excluding interest on GOI
    Loan)
    3690 1253 5560 50 100
    2.3 TOTAL COST 16253 49242 9883 1326 23648
    3.3
    Cash Loss (Excluding interest on GOI Loan & extra ordinary item) 15992 44012 8730 1226 23448
    GOI Loan Received 15802 71221 24062 ----- -----

    NJMC had been suffering cash loss since inception. In view of continuous cash loss and complete erosion of net worth, NJMC was referred to the Board for Industrial and Financial Reconstruction (BIFR) on August 11, 1992. Thereupon, BIFR declared the Company as sick under the provisions of Sick Industrial Companies (Special Provision) Act, 1985 (SICA). Time and again various revival proposals were submitted to BIFR which were turned down.

    BIFR vide its order dated July 8, 2004, confirmed winding up of NJMC Ltd. in terms of Sec.20(1) of Sick Industrial Companies (Special Provision) Act, 1985 (SICA). BIFR forwarded the case to the Calcutta High Court for winding up of the company and appointment of official Liquidator.

    On January 6, 2005, the Single Judge Bench passed the order for winding up of NJMC Ltd. and directed the official liquidator to take possession of assets of the company. Subsequently NJMC management preferred an appeal before the Division Bench of the Hon’ble High Court, Kolkata against above order dared Januar 6, 2005. The matter was heard by the Division Bench on February 7, 2005, and stay was granted which is presently operational. In the meantime, NJMC Officer’s guild filed an appeal before the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) against the winding up order of BIFR.

    The Cabinet in its meeting held on 24.03.2005 approved the following guidelines as a Plan of Action for the NJMC Ltd.

    (i) To reduce the manpower of the NJMC Ltd. by offering VRS to all the employees (13,942) of the organization, including the employees of the Head Office.
    (ii) To extend budgetary support to the extent of Rs. 978.00 crores for providing VRS, liquidating statutory arrears, gratuity, and secured liabilities of NJMC Ltd.
    (iii) the mills at Kinnison and Khardah will be referred to the Board for Reconstruction of Public Sector Enterprises and VRS offered to their employees; and
    (iv) VRS will be given to employees of other mills but these will be dealt under BIFR proceedings.

    Accordingly, the scheme for revival of two mills (Kinnison & Khardah) was submitted to BRPSE.
    In addition, submissions were made to AAIFR / High Court conveying the government’s decision to revive the said two mills.

    Based upon the proposal of revival prepared by the Ministry/NJMC in consultation with IDBI, the BRPSE has approved the revival plan of the NJMC with the following observations-

    (a) The board approved the revival proposal (in respect) to the RBHM Mill in Katihar, with association of private partner as proposed by Ministry of Textiles.
    (b) The Board also approved the proposal for revival of the Kinnison and Khardah Jute Mills as proposed by Ministry of Textiles. The Board also suggested that along with the revival of Kinnison and Khardah Mills in the public sector, the possibility of one or more appropriate private partner with their revival as in the scheme for revival of Katihar Mill should also be explored.

    AAIFR vide order dated 3.3.2008 has set aside the orders of BIFR and remanded the case to BIFR to consider the revival plan to be submitted by the Government.

    As per the decision of the Cabinet, VRS was notified in all the mills. All the workmen have opted for VRS and have been released.The Secured liabilities of NJMC have also been liquidated . Most of the Statutory dues of NJMC have been settled as well.

    The Government proposes to start implementing the revival plan of the NJMC in the year 2008-09.

  10. #30
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    Thumbs up Jute Sector - BIRDS JUTE & EXPORTS LTD.

    Jute Sector

    BIRDS JUTE & EXPORTS LTD.

    Birds Jute & Exports Ltd., a subsidiary of the National Jute Manufactures Corporation (NJMC) Ltd. is a processing unit in Jute/Cotton/Viscose & Blended Decorative Fabrics. The Company resumed production from April’88 after a virtual closure for a period of 8 years during which period the condition of plant and machinery immensely deteriorated resulting in higher/cost of production and low productivity.

    Due to frequent break down of old and outdated machinery, production of the company was suspended again with effect from Oct’98. The production of the company was resumed in the month of August, 2001 after a long interval of about 3 years after repairing of major machinery and payment of electricity bills. However, the production in BJEL was again discontinued from October’2002.

    The performance of BJEL during 2007-2008 in comparison to previous year is as under:

    2007-08 2006-07
    Sales Turn Over - -
    Cost of sales and other operating expenses - -
    Raw Material - -
    Stores 0.15 0.04
    Employee cost 24.06 21.12
    Other Expenses 35.77 32.28
    Depreciation 7.70 7.84
    Total operating expenses 67.68 61.28
    Operating loss 67.68 61.28
    Non trading income -8.96 38.84
    Financial charges (interest on banks, Government of India and Holding Company’s Loan) 478.37 445.66
    Net loss of current year 555.01 468.10
    Prior Period Adjustment 50.98 5.40
    Net Loss (-) Profit ( + ) -504.03 -462.70
    Cash Loss (-) Profit (+) -496.33 -454.86

    Huge interest burden of unsecured loan from holding company and Govt. of India is a significant part of loss of current year. Moreover, nothing has been realized from production activity.

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