Posts Tagged financial crunch

500 dyeing units in nearby Tirupur began an indefinite strike

Over 500 dyeing units in nearby Tirupur began an indefinite strike today, protesting against the “failure” of both the Centre and State Governments to provide grant to offset the capital expenditure incurred to set up Common Effluent Treatment Plants.

The Dyers Association of Tirupur, which called for the strike, claimed that the units would not be able to continue operations due to financial crunch. It said about five lakh workers, including those in the knitwear industry cluster in and around Tirupur, would be seriously affected if no steps are taken to mitigate their problems.

The units had set up 20 plants, with zero liquid discharge facility, at a cost of Rs 800 crore by borrowing from banks and financial institutions and are demanding that these governments give them grants to meet capital expenditure needs

The Supreme Court had also imposed a fine of about Rs 40 crore on them for polluting Noyyal river and for cleaning Orathapallam Dam, which bore the brunt of effluent discharge.

Meanwhile, Tirupur Exporters’ Association urged Tamil Nadu Chief Minister M Karunanidhi and union textile minister Dayanidhi Maran to intervene to resolve the crisis being faced by the knitwear cluster, due to the indefinite strike.

Exporters would be severely hit by the strike and they may lose orders and buyers

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