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THE JUTE AND JUTE TEXTILE INDUSTRY
The Jute industry occupies an important place in the national economy of India. It isone of the major industries in the eastern region, particularly in West Bengal. Jute, the goldenfibre, meets all the standards for safe packaging in view of being a natural, renewable,
biodegradable and eco-friendly product. It is estimated that that the jute industry provides directemployment to 0.37 million workers in organized mills and in diversified units includingtertiary sector and allied activities and supports the livelihood of around 4.0 million farmfamilies. In addition there are a large number of persons engaged in the trade of jute.
There are 80 composite jute mills in India. Out of the total 80 jute mills, 62 jute millsare located in West Bengal, 3 each in Bihar and U.P., 7 in Andhra Pradesh, 2 in Assam and 1each in Orissa, Tripura and Chattisgarh. Ownership- wise division is:- 6 mills are underGovernment of Indias P.S.U., 1 mill (Tripura) is under State Government, 2 mills (AssamCo-op. & New Central) are in the co-operative sector and 71 are privately owned mills.
As on 01-12-2010 total number of looms installed in jute industry stood at 48,260consisting of 22,038 Hessian looms, 24093 sacking looms, 1,068 C.B.C looms and others at1061. The installed spindles in jute mills other than 100% export oriented units were 731,408comprising 622,324 fine spindles and 109,084 coarse spindles. As on 01-12-2010, installedspindles in 100% export oriented units stood at 9472 with fine spindles at 6964 and coarsespindles at 2,508. The maximum installed capacity in jute mills other than 100% exportoriented units (on the basis of 305 working days per year) is estimated to be of 2.51 milliontonnes per annum.
RAW JUTE SCENARIO
Raw jute crop is an important cash crop to the farmers. Cultivation of raw jute cropprovides not only fibre which has industrial use, but jute stick which is used as fuel andbuilding material by the farming community. Raw jute is produced mainly in the state of WestBengal, Bihar, Assam, Orissa, Andhra Pradesh, Tripura and Meghalaya. The following tablewill indicate the supply demand position of raw jute including mesta for the period from 2007-08 to 2011-12:-
(Qty : In lakh bales of 180 KG of each bale)
2007-08 2008-09 2009-10 2010-11 2011-12
(A)SUPPLY
i) Opening stock 23.00 22.00 8.00 12.00 18.00ii) Jute and Mesta crop 99.00 82.00 90.00 100.0 110.00
iii)Import 8.00 2.00 3.00 6.00 5.00
Total : 130.00 106.00 101.00 118.00 133.00
(B)DISTRIBUTION
iv)Mill consumption 99.00 89.00 77.00 90.00 95.00
v)Domestic/industrialconsumption
9.00 9.00 10.00 10.00 10.00
vi)Export Neg Neg 2.00 NIL 1.00
Total: 108.00 98.00 89.00 100.00 106.00
(C)CLOSING STOCK 22.00 8.00 12.00 18.00 27.00
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The following table will indicate the State-wise production of raw jute including mestafor the period from 2007-08 to 2011-12:-
(In thousand bales of 180 k.g per bale)
States 2007-08 2008-09 2009-10 2010-11* 2011-12**
Assam 656.8 647.5 715.3 652.0Bihar 1251.5 1054.8 1118.4 1127.1
Jharkand 1.0 0.0 0.8 0
Meghalaya 34.9 34.6 34.7 0
Nagaland 6.4 1.3 2.0 0
Orissa 49.8 19.9 30.4 36.4
Tripura 3.7 3.7 3.8 0
West Bengal 8216.0 7872.6 9325.0 8137.5
Others 0 0 0 42.1
Total 10220.1 9634.4 11230.4 9995.1 11200.0
% Change overprevious year
-5.7% 16.6% -11.0% 12.1%
Source: Ministry of Agriculture, Directorate of Economics & Statistics.* 4th advance estimates.** 2nd advance estimates. Statewise production has not yet been estimated.
MINIMUM SUPPORT PRICE (MSP) FOR RAW JUTE AND MESTA
Minimum Support Price for raw jute and mesta is fixed every year to protect the interestof farmers. While fixing prices of different grades, the issue of discouraging production oflower grade jute and encouraging production of higher grades jute are taken into consideration
so as to motivate farmers to produce higher grade jute.
Jute Corporation of India (JCI) is the Price Support Agency of the Govt. of India forjute. It was set up in April 1971 primarily to protect the interest of the Jute Growers throughprocurement of Raw Jute under the MSP fixed by the Govt. of India from time to time and alsoto stabilize the raw jute market for the benefit of the jute farmers and the jute economy as awhole. JCI is conducting MSP operation as and when required. Raw jute is transacted in over500 centres countywide. Presently, JCI is operating only at 171 Departmental Purchase Centres.Co-operatives operate at about 40 centres. JCI in turn purchases the jute procured by these Co-operatives.
Raw jute purchased by JCI in association with the State Co-operatives during the lastseveral years is given below:-
YearProcurement of raw jute by JCI (Qty: In 000 Bales)
MSP Commercial Total
2007-08 756.0 0 756.0
2008-09 103.7 0 103.7
2009-10 0 0 0
2010-11 0 34.4 34.4
2011-12
(As on 4.2.2012) 126.7 0 126.7
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The minimum support price is fixed by the Govt. on the basis of recommendations ofthe Commission for Agricultural Costs and Prices (CACP). As per CACP reports, whileformulating the agricultural price policy CACP takes into account various factors such as costof production, overall demand/supply situation, domestic and international prices and effect ofminimum support price on general price level.
CACP every year also conducts meetings of all stake holders to decide minimum supportprice. The MSP announced by Govt. of India during the last several years are given below:-
YearMSP of TD-5 grade of raw jute Ex- Assam
(Rs./Quintal)
%age increase
over previous year
2007-08 1055 5.5
2008-09 1250 18.5
2009-10 1375 10.0
2010-11 1575 14.5
2011-12 1675 6.3
PRODUCTION OF JUTE GOODS
India is the leading jute goods producing country in the world, accounting for about70% of estimated world production. Bulk of the manufactured jute goods is predominantly
being used in packaging purposes in domestic market. 60% of the products at presentconstitutes sacking. The trend in production of jute goods from 2006-07 to 2010-11 is given
below:-(Quantity in 000 MT)
(April-March) Hessian Sacking CBC Others Total %
Change2007-08 350.3 1143.0 6.0 276.7 1776.0 30.9%
2008-09* 297.8 1071.4 4.1 260.4 1633.7 -8.0%
2009-10* 206.5 921.6 3.6 191.6 1323.3 -19.0%
2010-11 244.3 1084.0 3.4 241.0 1572.7 18.8%
2011-12(upto Nov. 2011) 153.3 749.5 2.4 112.4 1017.6
-2.4%
2010-11(upto Nov. 2010) 172.0 695.0 3.2 172.1 1042.3
Source: Office of Jute Commissioner, Kolkata
*The unusual fall in production during 2008-09 and 2009-10 is attributable to strike injute mills in West Bengal
DOMESTIC CONSUMPTION OF JUTE GOODS
India is the major producer of jute products in the world primarily due to its vastdomestic market. Average domestic consumption out of total production has been around 85%.Trend in domestic consumption of jute goods for the period from 2003-04 to 2010-11 is givenin the following Table:-
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(Quantity in 000 MT)
(April-March) Hessian Sacking CBC Others otal
2007-08 271.4 1101.9 1.4 168.6 1543.3
2008-09 249.8 1013.0 0.9 173.4 1436.2
2009-10 182.4 879.6 1.0 142.2 1205.2
2010-11 182.3 1034.4 0.9 133.9 1351.5
EXPORT PERFORMANCE
On the basis of despatches of jute goods for export based on the returns of jute mills,Cumulative export during April-March 2011 (2010-11), which is currently estimated at aboutRs.2076.34 crore is increase by 101% in Indian Rupees terms as compared to the same periodof April-March 2010 (Rs.1033.09 crore). This increasing trend in cumulative exports in valueterms has been mainly attributable to increase in exports of Jute Yarn by 270.25% and JuteHessian by 127.52% during 2010-11 as compared to corresponding period of previous year
(2009-10). Trend in export of jute may be seen from the following Table
(Value Rs. in Crores)
Hessian Sacking CBC Yarn JDP Others Total % Change
2007-08 299.83 91.38 - 285.18 402.55 64.63 1143.57 8.0%
2008-09 419.53 209.54 - 216.92 294.53 75.64 1216.16 6.3%
2009-10 174.19 100.38 - 179.34 343.40 47.39 844.70 -30.5%
2010-11 264.98 170.10 - 503.34 356.37 68.50 1363.29 58.6%
2010-11(Apr.-Aug.)
140.69 62.91 - 239.17 173.18 28.59 644.54
2011-12
(Apr.-Aug.)
131.79 151.79 - 91.45 177.46 23.04 575.53 -10.7%
Source: National Jute Board
IMPORT OF JUTE GOODS
India is the second largest importer of jute, kenaf and allied fibres, next to Pakistan.However, Government of Bangladesh has banned export of raw jute w.e.f. 07-12-2009(Onlymachines processed stapled jute will not come under the purview of the ban). In respect of jutegoods, emergence of India as an importer of jute goods is of recent phenomenon. Import dutyor raw jute and jute goods for importing these items from Bangladesh, Bhutan, Maldives and
Nepal have been totally withdrawn by Govt. of India w.e.f. 01-01-2008. Trend in import of raw
jute may be seen from the following Table :-
(Value Rs. in Crores)
Raw Jute Jute Products Total % Change
2007-08 196.7 138.09 334.81 4.0%
2008-09 89.0 202.99 291.99 -12.7%
2009-10 197.4 453.2 650.6 122.8%
2010-11 317.2 406.79 723.99 11.3%
2010-11 (Apr.-Aug.) 253.40 215.40 468.80 197.1%
2009-10 (Apr.-Aug.) 28.50 129.30 157.80Source: Customs, Petrapole Road, W.B. through JMDC.
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PRICE SITUATION OF RAW JUTE
2009-10:In the 2009-10 season, due to a very small carryover stock of around 8.0 lakh bales andmoderate production of 90.0 lakh bales, the ruling market prices of raw jute prevailed much
higher than the MSP in all jute growing states right from the beginning. In the month ofSeptember, 2009 the ruling prices came down from Rs.2801/- per quintal to Rs.2046/- perquintal due to arrival of the new crop. Thereafter, the prices showed an increasing trend due tothe feeling that the actual crop would fall short of estimates and it reached Rs.3308/- perquintal at the end of July, 2010. There was a strike in jute mills in West Bengal from 14-12-2009 to 12-02-2010. Due ot this strike, a total quantity of around 15.0 lakh bales have beenconsumed less. Despite the strike in jute mills, there was no sign of decreasing trend in the
price of raw jute as jute mills kept on purchasing raw jute in anticipation of further rise in priceafter the strike.
2010-11:
The 2010-11 season started with a carryover of 12 lakh bales and a drought like situationoccurred in a number of jute growing districts in West Bengal and Bihar. There was a shortageof high grade jute due to a shortage of water available for retting. The season began with a
price of Rs.3005/- per quintal and went upto Rs.3377/- per quintal in the month of Nov, 2010.Thereafter, the prices came down marginally and reached Rs.2724/- per quintal at the end of
jute season.
2011-12:The season started with a huge carryover stock of 18.0 lakh bales and the crop for the year wasestimated at 110.0 lakh bales. The price of raw jute recorded at the beginning of the season wasRs.2475/- per quintal. As the crop started arriving in the market, the prices have gone down. Atthe end of January, 2012, the price ruled at Rs.2300/- per quintal.
REGULATORY ORGANISATIONS IN JUTE SECTOR
(a) Subordinate Office under Ministry of Textiles(i) Office of Jute Commissioner
The function and activities of the office of jute commissioner relate to (i) furnishingtechnical advice to the Ministry regarding policy matter formulation pertaining to jute industry
including machinery development (ii) implementation of developmental activities through jute-related bodies of the Ministry of Textiles like National Jute Board (NJB) particularly for
promotion of jute handicraft and jute hand-loom in decentralized sector and entrepreneurialskill in such sector and R&D programmes through Indian Jute Industries ResearchAssociation (IJIRA) and other Textile Research Associations ,(iii) monitoring price behavior of
both raw jute and jute goods and implementing Minimum Support Price (MSP) operationthrough Jute Corporation of India to ensure MSP prices to jute and mesta growers and (iv)market promotion, particularly for exploring markets of jute goods both in domestic and exportmarket. Efforts are also being made to encourage/promote jute related activities in jute growingareas where such activities are inadequate and in-non jute growing states, including North EastStates. In exercise of the power vested underSection 4 of the Jute and Jute Textile ControlOrder, 2000, the Jute Commissioner issues Production Control Order (PCO) to jute mills forsupply of B.Twill bags on DGS&D account. These bags are required for packaging food grains
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procured under MSP by different State food grain procuring agencies including FCI fordistribution through PDS. The Jute Commissioner also keeps the Ministry informed of the
problems and status of the jute sector on a regular and timely basis.
Following the promulgation of RTI Act 2005, this office has appointed a Central
Public Information Officer. The Jute Commissioner is the Appellate Authority. Variousinformation are provided to different applicants under RTI Act. As per guidelines of theDepartment of Administrative Reforms and Public Grievances, an officer has been deputed tohandle the /public/staff grievances in the office of the Jute Commissioner.
Office of Jute Commissioners website is http://www.jutecomm.gov.in.
(b) Advisory Boards under Ministry of Textiles(i) Jute Advisory Board
The Jute Advisory Board headed by Secretary (Textiles) advises the governmentgenerally on matters pertaining to jute falling within the purview of Jute and Jute TextilesControl Order-2000 including production estimates of jute and mesta. The Board wasreconstituted on 23-04-2010 for a period of two years.
(c) Statutory Bodies under Ministry of Textiles(i) National Jute Board
National Jute Board (NJB) has been constituted, as per National Jute Board Act, 2008
(12 of 2009), effective on and from 1st
April, 2010 and erstwhile Jute ManufacturesDevelopment Council and National Centre for Jute Diversification got subsumed into NationalJute Board (NJB). In exercise of the powers conferred by sub-section (3) of Section 1 of the
National Jute Board Act, 2008 (12 of 2009), the Government of India, Ministry of Textiles(Jute Division), vide Notification: F. No.3/6/2007-Jute dated 30th March, 2010 has appointedthe 1st April, 2010 as the date on and from which the provisions of the National Jute Board Act,2008 (12 of 2009) shall come into force.
The NJB is statutorily mandated to undertake measures to:-
evolve an integrated approach to jute cultivation in the matters of formulation of
schemes, extension work, implementation and evaluation of schemes aimed atincreasing the yield of jute and improving the quality thereon ;
promote production of better quality raw jute;
enhance productivity of raw jute;
promote or undertake arrangements for better marketing and stabilisation of theprices of raw jute;
promote standardization of raw jute and jute products;
suggest norms of efficiency for jute industry with a view to eliminating waste,obtaining optimum production, improving quality and reducing costs;
propagate information useful to the growers of raw jute and manufacturers of
jute products; promote and undertake measures for quality control or raw jute and jute
products;
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assist and encourage studies and research for improvement of processing,quality, techniques of grading and packaging; of raw jute;
promote or undertake surveys or studies aimed at collection and formulation ofstatistics regarding raw jute and jute products;
promote standardization of jute manufactures;
promote the development of production of jute manufactures by increasing theefficiency and productivity of the jute industry;
maintain and improve existing markets and to develop new markets within thecountry and outside for jute manufactures and to devise marketing strategies inconsonance with the demand for such manufactures in the domestic andinternational markets;
sponsor, assist, coordinate or encourage scientific, technological and economicresearch in the matters related to materials, equipment, methods of production,
product development including discovery and development of new materials,equipment and methods and improvements in those already in use in the juteindustry;
provide and create necessary infrastructural facilities and conditions conduciveto the development of diversified jute products by way of assisting theentrepreneurs, artisans, craftsman, designers, manufacturers, exporters, non-Governmental agencies in the following manner, namely :--
- transfer of technology from research and development institutions andother organisations in India and abroad;
- providing support services to the entrepreneurs for the implementationof their projects including technical guidance and training;
- organizing entrepreneurial development programmes;- planning and executing market promotion strategies including
exhibitions, demonstrations, media campaigns in India and abroad;- providing financial assistance by way of subsidy or seed capital;- providing a forum to the people engaged or interested in diversified jute
products for interacting with various national and international agencies,engaged in the jute and jute textile sector;
organize workshops, conferences, lectures, seminars, refresher courses and setup study groups and conduct training programmes for the purpose of
promotion and development of jute and jute products;
undertake research on jute seed to improve quality and to shorten the gestationperiod of jute crop;
incorporate measure for sustainable Human Resource Development of the jute
sector and to provide necessary funds for the same; modernization of jute sector and technology development;
take steps to protect the interests of jute growers and workers and to promotetheir welfare by improving their livelihood avenues;
secure better working conditions and provisions and improvement ofamenities and incentives for workers engaged in the jute industry;
register jute growers and manufacturers on optional basis;
subscribe to the share capital of or enter into any arrangement (whether byway of partnership, joint venture or any other manner) with any other bodycorporate for the purpose of promoting the jute sector or for promotion and
marketing of jute and jute products in India and abroad.
National Jute Boards website is http://www.Jute.com.
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(d) Public Sector Undertakings under Ministry of Textiles(i) Jute Corporation of India Limited, Kolkata
The Jute Corporation of India limited (JCI), a Government of India Enterprise, was
established in 1971 under the Companies Act, 1956 and is engaged in purchase and sale of juteand mesta. JCI is an Official Agency of the Ministry of Textiles (MOT), Govt. of India, forimplementing the policy of providing a Minimum Support Price (MSP) to the millions of jutegrowers and to serve as a price stabilizing agency in the jute sector. As per the policy decisionof the government, JCI is obliged to buy whatever quantity of jute is offered at support rates bythe growers without any quantitative limit. The losses incurred by JCI while implementing theopen-ended policy of the Government of India to support the jute farmers are reimbursed bythe Government of India. The Corporation has started marketing of non-traditional jute
products in collaboration with the National Jute Board through a sales Emporium at Kolkata.
Currently, JCI is operating through 171 Department Purchase Centers (DPC) situated in
7 Jute Growing States namely West Bengal, Assam, Maghalaya, Bihar, Orisa, Andhra-Predeshand Tripura. In order to increase its market coverage, JCI has involved Cooperative Society inthe Jute Growing States to participate in MSP operation in the raw jute/ mesta through theirDPCs.
There are three types of jute i.e. Tossa (TD), White (W) and Mesta (M) which is gradedaccording to their quality. The Commission for Agriculture Costs and Price (CACP)undertakes a study every year to recommend the Minimum Support Price of raw jute. JCI
provides all the data and necessary assistance to CACP in this regard. TD 5 grade Ex-Assamprice for MSP Operation is declared by the Govt. of India in the month of February- Marcheach year and the same is taken as a base by the office of the Jute Commissioner who fixed theMSP for all other locations along with Kolkata Landed Price for all other Grades (MSP is the
purchase price of the Corporation at which the jute is purchased from the jute growers withoutany quantitative limit if the prevailing market price of jute is lower than the MSP).
Performance Highlight
Particulars
Quantitative (Bales/Lakh):
2007-08 2008-09 2009-10 2010-11 Projected
2011-12
Procurement of Raw Jute 7.66 1.02 0.01 0.34 1.10
Sales of Raw Jute 5.92 6.58 0.23 0.10 1.00
Closing Stock 5.84 0.24 0.01 0.26 0.36
Financial (Rs./Lakh)
Sale of Raw Jute 14233.79 16666.33 892.16 566.08 4000.00
Sales jute seed 18.52 15.39 79.10 625.09 1000.00
Adjusted cumulative ProfitAfter regulation of subsidy as
per Cabinet decision
7608.19 5782.38 5938.12 4791.44 5091.00
Jute Corporation of Indias website is http://www. jci.gov.in.
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(ii) National Jute Manufactures Corporation Limited (NJMC), Kolkata
The National Jute Manufactures Corporation Limited (NJMC) was incorporated in1980, constituted by six nationalized jute mills viz. National, Kinnison, Khardah, Alexandra,Union & RBHM of which the first five are located in and around Kolkata and RBHM atKatihar, Bihar. NJMC is the only Public Sector Undertaking engaged in Jute goodsmanufacture. The Company produces traditional jute goods like Sacking, Hessian, Jute Twine.
The Government of India approved the Revival Plan for NJMC with cost of Scheme ofRs. 1562.98 Crores on 19th March and 25th November 2010. The three units namely Kinnison,Khardah of Kolkata and RBHM Jute Mills Katihar (Bihar) will be revived and modernized.The BIFR has approved the Revival Scheme of NJMC on 31st March 2011.
Ministry of Textiles has constituted a Modernization Committee to start the revivalprocess of Millls of NJMC. The machine audit has been completed in all the three mills. Thecivil work and trial run is being undertaken with repair and renovations of old plant and
machineries. The first jute bag (sacking) was manufactured in Kinnison & Khardah mills inAugust 2010 and in RBHM Katihar in Septmber 2010. Regular production of 10 MT per day istarted in RBHM Katihar from December 2010 and 5 MT in Khardah and 3 MT per day inKinnison Mills from November 2011.
The RBHM has produced and dispatched more than 5000 bales of sacking (B Twill)approximate value Rs 10 Crores to Government Food procuring agencies. More than 1500worker are getting employment with resumption of production in all 3 Revival Mills of NJMC.
The NJMC has already started implementation of Revival Plan as approved by BIFR on31st March 2011. The process of sale of surplus assets of three closed Mills shall also be
undertaken as per the schedule and procedure approved by BIFR. The recommendation isnoted and would be followed for revival of the remaining three mills which have not beenincluded in the ongoing revival scheme.
Cabinet Decisions
a) Cabinet in its meeting held on 24.03.2005 had approved the Plan of Action forthe company in the following manner. (i) To reduce the manpower by offering VRS toall the employees of the organization including the employees of the Head Office (ii)To extend budgetary support to the extent of Rs.978.00 Croress for providing VRS,liquidating statutory arrear, gratuity and secured liabilities of the company (iii) The
mills at Kinnison and Khardah will be referred to the Board for Reconstruction ofPublic Sector Enterprises (BRPSE) and VRs offered to their employees and iv) VRSwill be given to employees of other mills but these will be dealt with under BIFR
proceedings.
b) The Cabinet, on 19th March 2010 approved the Revival scheme of theCompany as follows: -
Revival of the three mills viz. Khardah , Kinnison and RBHM Katihar byoperating through NJMC itself and closure of remaining three mills viz.Alexandra , National and Union with Cost of Scheme Rs.1417.53 crores.
Additional budgetary support ( interest free loan) of Rs 215.70 croressduring 2010-11 ( in addition to Rs 122.45 croress in 2009-10) .
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Financial restructuring of NJMC Ltd. i.e. to write off entire outstanding loansand liabilities of Rs. 2722.02 crores and interest of Rs. 4093.04 crores onthose loans and other assets / receivable as on March31, 2009 againstaccumulated loss.
Relief package to Officers / Executives for successful implementation of
VRS and the Revival Scheme. Settlement of liabilities of unsecured creditors to the extent of Principal
amount only.
c) The Cabinet on 25th November, 2010 modified the Revival Scheme of thecompany as follows
Grant of composite package of Revision of Pay Scales (92/97); VRS (on 97Pay scales); and arrears @40% may be offered for full and final settlement ofdues of Officers and Executives in the light of the judgment of Honble HighCourt of Kolkata;
Revised cost of Scheme of Rs.1562.98 croress for Revival of NJMC whichincludes additional budgetary support of Rs. 145.45 croress (interest freeloan) for meeting the additional cost in the revised Cost of Scheme.
Revised repayment period of the loans granted to NJMC as 2013-14 to 2024-25.
Action Taken on decision of the Cabinet
Consequent to the decision of the Cabinet on March 24th 2005 NJMC given VRS to allworkers (16325) and staff (882) of the mills including Head office at a cost of Rs. 439.24 Cr.and also settled their wages salary, PF, ESI, Arrears Gratuity & Other dues of Rs 508.99
crore. Officers also have been relieved under composite package of VRS w.e.f 31.10.2011 at acost of Rs.110.34 cr.as per decision of the Cabinet dated 25th November,2010. AModernisation Committee has been formed to plan and execute the process of repair,renovation & modernization. M/s Deloitte consultant has been engaged to finalise the tenderdocument for procurement of new machinery on turnkey basis which is under progress.Meanwhile a strategic plan was taken to continue with existing available machines withrenovation and balancing for production of sacking and yarn in all three mills . Ministry hassigned MOU with NJMC for the year 2011-12 fixing some financial, dynamic and enterprisespecific targets as per MOU negotiation meeting held by DPE for implementation of revival
program of NJMC.
Details sanction of Revival Scheme by BIFR
Board for Industrial and Financial Reconstruction (BIFR) on March31,2011 sanctionedthe Revival Scheme of the company after prolonged hearing. The salient features of theScheme are :-
NJMC shall run 3 mills (Kinnison&Khardah in W.B. and RBHM in Bihar) byitself and close 3 mills ( National, Alexandra & Union in W.B.) at a total cost ofRs 1562.98 crores comprising repayment of liabilities of Rs.1205.83 crores,startup & modernization Rs.215.70 crores and cash loss for implementation periodRs.141.45 crores.
The NJMC will get fresh interest free loan of Rs. 483.60 crores from GOI, to be
refunded through sale of assets of 3 (three) mills of NJMC (National , Union &
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Alexandra) and surplus assets of Kinnison & Khardah and RBHM the threerevival mills.
The installed capacity will be 305 MT/day after complete modernization at a costof Rs. 215.70 crores
Net worth is expected to be positive in the 6th year i.e. 2015-16.
Settlement of Officers VRS under composite package. Engagement of workforce under contract basis initially for two years to avoid
additional fixed cost till modernisation is complete.
Physical & Financial Performance
The average production is gradually increasing in all 3 Revival Mills which is restartedafter a gap of 8 years.The present level of employment would rise with the increase in
production and modernization as per the revival scheme.
PARTICULARS 2009-2010 2010-2011 2011-2012(Estimated)
Production (MT) ---- 714 7577
Av. Workmen per day 800 1500
Rs. in Cr. Rs. in Cr. Rs. in Cr.
Sales ---- 35.28
Other Income 11.66 18.66 4.00
Accretion of stock --- 4.06 ---
TOTAL 11.66 22.72 39.28
Raw Material & Stores --- 6.08 28.31
Power & Fuel 0.31 2.00 4.09
Wages Contractual ---- 1.69 11.18Repair & Maintenance 0.12 9.00 21.55
Selling & Distribution --- ---- 0.19
Salary & Benefits (Including Arrear) 9.98 72.61 11.91
Administrative &other Overheads 11.19 9.74 10.00
Interest 0.79 10.20 2.00
VRS Expenditure 2.47 40.68 2.24
Depreciation 0.16 0.15 0.16
TOTAL 25.02 152.15 91.63
Net Loss 13.36 129.43 52.35
Cash Loss 13.20 129.28 52.19
National Jute Manufactures Corporations website is http://www. njmc.gov.in.
(iii) Birds Jute & Exports Limited (BJEL), a subsidiary of NJMC
Introduction & Background
Birds Jute & Exports Ltd (BJEL) a processing unit of Jute fabric was a subsidiary ofBird & Co. established in 1904. Bharat Process & Mechanical Engineers Ltd ( BPMEL) underthe Ministry of Heavy Industry took over the assets on nationalization in 1980 and became a
holder of 58.94% of BJELs equity shares.. Thereafter the GoI decided to transfer shares ofBJEL to NJMC in 1986.
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BJEL operated as a processing unit for bleaching, dyeing & printing of jute and blendedfabrics. It was declared sick by BIFR u/s 3(1)(0) of Sick Industrial Companies (SpecialProvisions) Act, 1985 (SICA) in the year 1999 due to continuous losses and negative networth. Of late IDBI Bank Ltd. was appointed as operating agency for preparationRehabilitation Scheme under section 17(3) of the said Act.
Revival Proposal of BJEL
The proposal for revival of BJEL prepared by IDBI was considered by BRPSE onApril, 2008 and granted in principle approval with certain observation. Accordingly IDBIrevised the revival proposal. A draft cabinet note was also circulated by the MOT in view ofcomment raised by the ministry of Finance. MOT decided to place the updated revival schemeto BRPSE for its recommendation. Accordingly, BJEL resubmitted the revised revival proposalwith a total Cost of Scheme of Rs.137.88 Crore to be financed mainly from sale of surplus landof the BJEL and interest free GOI loan .The entire GOI loan and holding company loantogether with accrued interest at a normal rate has been proposed to be refunded from sale of
surplus land of BJEL. The proposals also include modernization & renovation of its existingplant with capital expenditure including working capital of Rs. 30.57 Crore. The aboveproposal was forwarded to BIFR.. BIFR accepted the revised DRS of BJEL with in principalapproval from Ministry of Textiles to provide start up expense amounting to Rs 21.21 crore as
bridge loan and directed to circulate to the stake holder on 3.11.2011.
Physical and Financial Performance
The production activity of the company has been suspended for last 8 years and thecompany has given VRS to all its workmen and staffs in the year 2003 and 2004. Restart of
production is expected after the sanction of revival scheme from BIFR. The Financialperformance for the year 2010-11 as compared to 2009-10 and estimated for the year 2011-12is tabulated below:-
(Figures in Lakhs)
Physical 2009-10 2010-11 2011-12(Estimated)
Production ---- ---- ----
FINANCIAL RESULT (Rs.in Lac) (Rs.in Lac) (Rs.in Lac)
Rent & Other Income 7.80 8.38 0.43
Total 7.80 8.38 0.43
Salary & Wages 13.12 13.02 7.23VRS Expenditure ---- ---- 267.69
Administrative &other Overheads 43.46 39.05 52.83
Interest on GOI &NJMC loan 634.49 726.46 775.00
Depreciation 6.49 1.26 1.20
Total 697.56 779.79 1103.95
Net Loss 689.76 771.41 1103.52
Cash Loss 683.27 770.15 1102.32
Cumulative Net Loss 7862.35 8633.76 9737.28
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(e) Other Organisations supported by Ministry of Textiles in Jute Sector
(i) Indian Jute Industries Research Association (IJIRA), Kolkata
Indian Jute Industries Research Association [IJIRA] was established in 1937, the first
co-operative R & D organisation rendering services to the Indian Jute Industry andGovernment Agencies who are promoting Indian Jute in export and domestic market.Beginning as Indian Jute Mills Association Research Institution (IJMARI) in 1937, the
institute has grown over the years and moved to its current imposing premises in 1952. In theyear 1966, IJMARI was renamed IJIRA and registered under the West Bengal SocietiesRegistration Act, 1961 as an autonomous cooperative research organization. IJIRA is oneof its only kinds of research associations in India dealing with a fibre grown only in this part ofthe world and by virtue of this, it is unique.
IJIRA is headquartered in Kolkata, with its regional centres being at Cherthala(Kerala), Vizianagram (Andhra Pradesh) and Guwahati (Assam). Guwahati Regional Centrealso has the Powerloom Service Centre co-located with it. There is a Testing Laboratory too atShantipur (West Bengal). Since its inception, IJIRA has, over the years, grown into a worldclass research institute on jute.
Major Areas of Research are:
Development of an eco-friendly substitute of JBO for jute processing.
Light fast bleached & dyed jute product development.
Jute Bamboo composites.
Development of Technical Textiles such as wider braided jute fabric.
Jute-Ramie blended finer yarns and fabric development. Energy efficient green sizing technology for jute yarns.
Development of Aroma based home textiles.
Multifunctional ceramic based nano-finishing outdoor textiles by sol-gel-methods.
Development of Low Cost Jute Bags for Foodgrains and Sugar.
Quality Assurance for food grade jute products.
In additional to rendering various technical services to Jute Sector, IJIRA ispresently involved in Jute Technology Mission Projects DDS 7.1 and DDS 6.4 projects,
promotion and techno-marketing of jute geo-textiles in association with National Jute Board,quality assurance of food grade jute products and consultancy.
(ii) International Jute Study Group (IJSG)
The International Jute Study Group (IJSG) is an intergovernmental body set up underthe aegis of UNCTAD to function as the International Commodity Body (ICB) for Jute, Kenafand other Allied Fibres.
The IJSG was set-up to succeed the erstwhile International Jute Organisation (IJO),which entered into the liquidation mode in the year 2000. It formally entered into force on and
from 27 April 2002 with the completion of the process of Definitive Acceptance/Acceptanceby Governments of Bangladesh, India, Switzerland, and the European Community representingits 27 member countries and representing over 60% jute trade (import and export). The IJSG
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administers the provisions of the successor Agreement on Jute and Jute products, 2002 adoptedby the United Nations. The objectives of the Group are:
(a) To provide an effective framework for international cooperation, consultationand policy development among members with regard to all relevant aspects of
the world of jute economy;(b) To promote the expansion of international trade in jute and jute products by
maintaining existing markets and by developing new markets, including theintroduction of new jute products and the development of new end-uses;
(c) To provide a forum for the active participation of the private sector in thedevelopment of the jute sector;
(d) To address the issues of poverty alleviation, employment and development ofhuman resources, particularly women, in the jute sector;
(e) To facilitate the improvement of structural conditions in the jute sector throughimprovement of productivity and quality, and promotion of the application of
new processes and technologies;
(f) To create and increase awareness of the beneficial effects of the use of jute asan environmentally friendly, renewable and biodegradable natural fibre;
(g) To improve market intelligence with a view to ensuring greater transparency inthe international jute market in collaboration with other organizations,including the Food and Agricultural Organization of the United Nations(FAO).
Since its inception, three officers from Government of India have been elected asSecretary General of the Organisation. Shri T. Nandakumar, was elected as its first Secretary-General in 2002 and Shri Sudripta Roy was elected in 2007, and thereafter, the Council of theIJSG in its Eleventh meeting held on May 2-3,2010, appointed Shri Bhupendra Singh, asSecretary General, IJSG for a period of two years with effect from October 1, 2010.
(iii) Institute of Jute Technology (IJT), Kolkata
The Institute of Jute Technology (IJT), established in 1947 and jointly founded byUniversity of Calcutta and Indian Jute Mills' Association with the main object of impartingknowledge of jute technology and training of students, has since been running as anautonomous educational institute. The Institute at present offers a regular 4-year B.Tech (Jute& Fiber Technology) Degree Course in line with the all India pattern for engineering degree
courses. The degree is being awarded by the University of Calcutta. Institute has recentlyintroduced a regular 4 semester M.Tech. course in Textile Technology (Technical Textiles)under the University of Calcutta. The institute also offers two regular courses, popularly knownas Junior Level Supervisory (JLS) courses, one on spinning and other on weaving, each with aduration of 3 months. These courses are meant for the persons working in jute mills insupervisory capacity for a long time but do not have any formal technical education.
The Institute not only organizes training programmes for Jute Mill Sector but also catersto the need for HRD of the decentralized jute sector which is gradually occupying an importantrole in the area of jute diversification. The Institute of also offers testing, inspection andtechnical services both to the centralised and decentralized sectors of the jute and allied
Industries. The faculty members of the institute also carry out in-house and sponsored appliedresearch projects.
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(iv) Central Research Institute for Jute Allied Fibres (CRIJAF)
The following are the mandate of CRIJAF:
Improvement of jute (C. capsularis and C. olitorius) and allied fibre crops like mesta(H. cannabinus and H.sabdariffa), sunnhemp, (Crotalaria juncea), rame (Boehmeria
nivea) sisal (Agave sisalana) and flax (Linum usitatissimum) for yield and quality. Improvement of jute and allied fibre crops for biotic and abiotic stresses.
Development of economically viable and sustainable production technology andcropping systems with jute and allied fibre crops.
Transfer of technology and human resource development in relation to jute andallied fibre crops.
Development of proper post-harvest technology for improving the quality of fibre.
(v) National Institute for Research in Jute and Fibre Technology (NIRJFT)
NIRJAFT is under ICAR, Government of India devoted to technological research onjute & allied fibres. There are four full fledged divisions in the institute, namely, QualityEvaluation and Improvement Division, Mechanical Processing Division, Chemical &Biochemical processing division and Transfer of Technology Division.
INCENTIVES TO JUTE SECTOR
(a) National Jute Policy - 2005:
National Jute Policy - 2005: Government of India recognized the significance of jute inIndias economy which provides sustenance to more than 4 million people including jute
farmers, workmen, labourers and self employed artisans and weavers, especially in Eastern and
North-Eastern part of the country, where it is the mainstay of agro based industries. World overit has been recognized that jute and allied fibres occupy a unique position as eco-friendly, bio-degradable, renewable natural fibres with substantial value addition at each stage of processing.Taking note of the new opportunities presented by the changing global environment ofintegration in the development of natural fibres, the strength and weaknesses of the jute sectorin India and acknowledging the growing demand for diversified and innovative jute product inthe world market, GOI announced the National Jute Policy 2005 to redefine the goals andobjectives, focus on thrust areas and sharpen strategy in tune with the times with a view to givethe jute industry in India a fresh impetus in all respect.
The main objective of the policy is to facilitate the jute sector in India to attain andsustain a pre-eminent global standing in the manufacture and export of jute products byenabling the jute industry to build world-class state-of-the art manufacturing capabilities inconformity with environmental standards. The policy seeks to strengthen R&D activities inagricultural practices with public-private partnership with a vision to ensure remunerative
prices to millions of jute farmers by enabling them to produce better quality jute fibre for valueadded diversified jute products and enhance per hectare yield of raw jute.
(b) Jute Packaging Materials (Compulsory use in packing commodities) Act, 1987
The Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987
(JPM Act) came into operation with effect from 9th May 1987. It provides for the compulsoryuse of jute packaging material in the supply and distribution of certain commodities in the
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interests of production of raw jute and jute packaging material and of persons engaged in theproduction thereof and for matters connected therewith.
Based on the recommendation of the SAC, the Central Government will decide thenorms of compulsory packaging for the jute year 2011-12 (July-June) under the JPM Act,
1987, prescribing the norms of compulsory packaging for both foodgrains & sugar.Accordingly, an order will be issued in the Official Gazette under the JPM Act, 1987, whichwill be valid till 30.06.2012.
The level of reservation recommended by the Government in the past few years hasbeen as follows:-
Mandatory Jute Packaging Orders issued under JPM Act, 1987
Order date Year Sugar Foodgrains
24-07-2006 2006-07 100% 100%
09-08-2007 2007-08 100% 100%
01-09-2008 2008-09 100% 100%22-09-2009 2009-10 100% 100%
27-08-2010 2010-11 100% 100%
17-01-2012 2011-12 100% 100%
(c) Technology Upgradation Fund Scheme:
The objective of the scheme is to sustain and improve the competitiveness of thetextiles/jute industry and overall long term viability through technology upgradation. Thecumulative position of sanction and disbursement under TUF as on 31-03-2010 is given below
in the following table:- (Rs. in crores)
As on No. ofapplicationsreceived
Totalcost of
projects
Amountof loanrequired
Sanctioned Disbursed
No. ofapplications
Amount No. ofapplications
Amount
31-12-2007 35 285.11 146.96 32 139.34 30 128.60
31-01-2008 35 285.11 146.96 32 139.34 30 128.60
31-03-2009 46 456.43 348.29 - 343.29 46 333.49
31-03-2010 53 535.62 405.89 53 400.88 53 390.69
% Varation
31.03.2009/31.03.2010
15.2% 17.34% 16.53% - 16.77% 15.2% 17.15%
(d) Duty Entitlement Drawback Pass Book (DEPB) Scheme by DGFT:
Duty Drawback Pass Book (DEPB) Scheme for jute products was introduced witheffect from 09-07-2002. The DEPB rates of jute products are as follows:-
Product Code : 90
S.
No.
Description DEPB Rate
(%)
Value cap for DEPB
entitlement24. Jute Soil Saver 5.0
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25. Jute Yarn / Jute Twine 4.0
26. a. Hessian Clothb. Hessian made-up
5.05.0
Rs. 40/KgRs.55/Kg
27. a. Sacking clothb. Sacking made-up
6.06.0
Rs.30/KgRs.40/Kg
Product Code: 63
Sl.No.
Description DEPB Rate(%)
Value cap forDEPB entitlement
34 Hessian Bags with LDPE/HDPE/PPliner/lamination and with/withoutZipper/ Handle
3.0 Rs.175/Kg.
37 Jute Bags with HDPE/LDPE / PPliner/lamination with/withoutZipper/ Handle
3.0 Rs. 175/Kg.
83 PVC Fabricated Bags (made fromPVC leather cloth backed jute and
polypropylene)
5.0 -
116 Poly Jute Bags 3.0 Rs. 40 / Kg
589 Textile Machinery 7.0 Rs. 7.0 lakh
519 Sewing Machenery 4.0 -
(e) Technical Textiles
On the recommendation of an expert committee report and Government of India hasrecently set up a Steering Committee for Growth & Development of Technical Textiles
(SCGDTT) wherein jute is expected to play an important role. A core committee has also beenset up for development and promotion of jute based technical textiles. The following groups oftechnical textiles have been identified as having good potential for development in the jutesector:-
1) Agrotech (Nursery bags, cloth for Weed control and Agro mulching),2) Buildtech (Intermediates for composites, Hessian for construction sector,
composite for acoustic management)3) Geotech (Jute geo textiles)4) Oekotech ( Food grade jute products, Garbage disposal bags / garbage covers),5) Packtech ( New generation packaging)6) Protech (personal and property protection)
7) Indutech ( filter fabric, gloves, aprons and shoe uppers)
The study report of expert committee on technical textiles estimated that the globalmarket size of technical textiles in 2005 was to the tune of US$ 106899 mn. However, the
percentage of natural fibre technical textiles was estimated to be about 20% only. Compared tothis the Indian market size in the year 2003-04 was Rs 27377 Crore.
Development and application of potentially important Jute Geo-textile:
An international project on Development and application of potentially important JuteGeo-textiles in rural road construction and erosion control has recently been launched. The
project was mooted by the International Jute Study Group (IJSG), Bangladesh with CommonFund for Commodities (CFC) providing 51.60% of the project cost (US$ 3,962,826) as grant.
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The project will cover India and Bangladesh and several European countries. The objectives ofthe project would be
(i) Development of potentially important Jute Geotextiles (JGT) suitable for use inthe two identified end-uses viz. soil erosion control and rural road construction.
(ii) Standardization of potentially important JGT, evolving design methodologiesbased on simulation studies & field applications.
The purpose of the project is to expand domestic and international market, especially inEuropean countries, of JGT in the two specific areas of application through internationalaccreditation.
One of the major components of the project is to assess market needs for the twospecific applications and to analyze the supply chain. A total of 26 field trials will beconducted for this purpose (16 in India and 10 in Bangladesh). National Jute Board is thePrincipal Executing Agency (PEA) of the project.
Other project features:
Duration : 60 months
Estimated Project Cost : US $ 3,962,826
Contribution from CFC : US $ 2,045,000 (51.60% of the project cost)
Govt. of India and Bangladesh will make contribution in kind by bearing the cost of thefield trials.
(f) Jute Technology Mission:
The Government of India launched Jute Technology Mission (JTM) spanning a periodof 5 years during the 11th Five Year Plan period (2007-08 to 2011-12) for overall developmentof the jute industry and growth of the Jute Sector. The Jute Technology Mission with a totaloutlay of Rs. 355.5 crores has four Mini Missions pertaining to agriculture research and seeddevelopment, agronomic practices, harvest and post harvest techniques, primary and secondary
processing of raw jute, diversified product development and marketing and distribution.
The Jute Technology Mission has been divided into four Mini Missions and theimplementing agencies of each Mission are given below:-
Mission Implementing Agencies Fund Allotted(Rs. in Lakh)
Mini Mission-I Ministry of Agriculture(ICAR) 705.78
Mini Mission-II Ministry of Agriculture (DARE) 4,990.00
Mini Mission-III Ministry of Textiles (JCI) 6,480.00
Mini Mission-IV Ministry of Textiles (NJB) 23,380.00
Total 35555.78
Objectives of the schemes:-
Improve the yield and quality of jute fibre by (a) developing new varieties; (b)developing improved retting procedures; and, (c) promoting scientific agronomicpractices;
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Strengthen the existing infrastructure to develop and supply quality seeds throughthe public-private partnership framework;
Implement quality improvement programmes with a thrust on retting and theadoption of other innovative extraction technologies;
increase the supply of quality raw material to the jute industry at reasonable prices
so that they can meet the growing demand for better quality yarn, twine and fabricfor Diversified Jute Products (JDPs);
Explore the prospectus of Commercial utilization of sun hemp, ramie, jute andmesta in the pulp and paper industry;
Establish strong market linkages by improving the available markets, and put inplace a rural network of market facilities for the benefit of jute growers;
Modernize plant and machinery in the jute industry, adopt international standards,and upgrade skills;
Take up market promotional activities and explore new areas to increase theconsumption of raw jute, Jute Diversified Products (JDPs), and increase earningsthrough export.
GOALS:
The average yield of raw jute in the country in 2002-03 was 2200 kg/hectare. It isexpected that this will go up to 2700 kg. /hectare in the terminal year of theMission.
As a result of establishing a modern marketing infrastructure, it is expected thatnearly 20% farmers will avail of these facilities as against the present level of 10%Jute farmers are expected to get an enhanced return of Rs.50 per quintal, which is
presently appropriated by middlemen (Fgariahs). It is expected that the
composition of different grades of raw jute will shift in favour of TD-3 and TD-4significantly.
Several schemes, incorporation an exhaustive and holistic approach to thetechnological and infrastructural upgradation of jute industry will catalyze the
production and marketing of JDPs. This will be visible in:a) the change in the whole environment of production, usage and sustenance of
jute ;b) the level of modernization in jute mills from the present level of 30% to 50%;c) a 15% rise in the productivity level of these mills (to 35 man-days per metric
tonne);d) an increase of the share of JDPs to 20% from its present level of 8%; and
e) growth of exports of JDPs by 45%.
STRATEGY TO ACHIVE THE GOALS AND OBJECTIVES
To fulfill the objectives of the Jute Technology Mission, four Mini Missions areproposed to be established in collaboration with the Ministry of Agriculture (Department ofAgriculture & Cooperation, and Department of Agricultural Research and Education(DARA/Indian Council of Agricultural Research (ICAR).
MINI MISSIONI (MM-I)
This Mini-Mission will be coordinated and implemented by the Department ofAgricultural Research and Education (DARE) /Indian Council of Agricultural Research
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(ICAR) under the Ministry of Agriculture. The mandate of Mini Mission-I will be tostrengthen research and technology activities for the development of improved varieties and
protection technologies for jute and allied fibre crops. The potential productivity of the newlydeveloped technology, including new varieties will be raised at lease by 25 percent. Researchefforts will be directed towards the development of varieties for different agro-climatic zones.
New varieties will be developed to include desirable quantitative and qualitative characteristicsto meet various agro-industrial needs. Research efforts will also cover the process of retting,which is an integral process contribution to the improvement of the quality of the fibre. MiniMission-I comprises six schemes with total proposed outlay of Rs.7.05 crore during the entireMission period from 2006-07 to 2010-2011.
MINI MISSION-II (MM-II)
This Mini-Mission will be coordinated and implemented by the Department ofAgriculture and Cooperation. The mandate of Mini Mission-II will be to transfer improvedtechnology through extension to the farmers MM-II will harness post production and
management technologies and concentrate on post-harvest technology to augment yield andquality improvement of jute and allied crops. Separate development programmes forassociated fibres will also be launched under this Mission, and it will consider the prospects ofcommercial utilization of jute and allied fibres in the pulp and paper industry. Mini Mission-IIcomprises eighteen schemes with total proposed outlay of Rs.49.90 crore during the entireMission period from 2006-07 to 2010-2011.
MINI MISSIONIII (MM-III)
This Mini-Mission will be coordinated and implemented by the Ministry of Textiles.The mandate of this Mini Mission will be to develop and ensure efficient market linkages andvalue addition for raw jute. This will include upgradation of the existing market infrastructureand facilities to be provided to frame the aim will be to provide market support to farmers toenable them to get a fair market price by providing reliable and accessible market information.The focus on the technology transfer programmes to improve fibre quality through theadoption of improved retting techniques will be an integral part of the MM-III. Mini MissionIII comprises five schemes with total proposed outlay of Rs.38.60 crore during the entireMission period from 2006-07 to 2010-11.
Progress Status as on 31.10.2011
I.
Physical Achievement in respect of MM-III
Scheme I : Development of Market Yards
State Physical
Target
Work
Completed
Work in
Progress
Names of Completed
sites
Names of Sites
for work in
progress
WestBengal
8 6 2 Champadanga,Karimpur, TulsihataDhupguri, ToofanganjBethuadahari
SetaiEnglishbazar
Assam(NER)
3 1 2 Kharupetia BaharihatGouripur
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A.P. 1 1 - Parvathipuram
Total 12 8 4
Scheme II : Construction of Departmental Purchase Centers
State Physical
Target
Work
Completed
Work in
Progress
Names of completedsites
Sites in Progress
WestBengal
22 13 09 KarnojoraMathabhanga Kalna,Katwa HarirampurTalmahat IslampurAlipurduar JangipurKaladanga PanduaPanjipara Patiram
RezinangarIRezinagarIIPalassyparaDhulian, *AndhiLalbaghI,LalbaghII*Paccamati**Dudhkumrahat
Assam(NER)
10 07 03 Kaliabor NizdhingAbhayapuri BarpetaGoalpara DalgaonBilashipara
Juria, DhingBhuragaon
Bihar 5 01 04 Gulabbagh ForbeshganjThakurganjKishanganjBahadurganj
A.P. 1 - 1 Bobbili
Orissa 2 - 2 BhadrakKendupatna
Total 40 21 19
* Not yet started. ** Site not suitable for DPC construction for poor transportation system
Scheme III : Construction of Retting Tank
State Physical Target Work Completed Work in Progress
West Bengal 30 24 06
Assam (NER) 12 06 06
Bihar 05 02 03
A.P. 01 - 01
Orissa 02 - 02
Total 50 32 18
Scheme IV : Demonstration of Retting Technology
State Physical Target Work Completed Work in Progress
West Bengal 120 120 0
Assam (NER) 40 40 0
Bihar 20 20 0
A.P. 10 08 2
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Orissa 10 10 0
Total 200 198 2
Scheme-V : Development of high speed Ribboners
Project San. Progress
JadavpurUniversityPhase-I & II
Completed work of Ph-I. Developed 1 ribboning machine which is placedunder Champadanga, Hooghly for demonstration.Ph-II: Jadavpur University has developed 2 more ribboning machines. Thefield trial run is in progress.
CRIJAF(Barrackpore)
Project for development of High Speed Ribboner (1 st Phase) sanctioned toCRIJAF on Feb09 with an advance of 50% of the Project cost. The project
is still under progress.
NIRJAFT(2011-12)
Project for development of High Speed Ribboner sanctioned on May 2011with an advance of Rs.15.00 lakhs. The project is under progress.
II. Financial Achievement in respect of MM-III (as on 31.12.2011)(Rs. In crore)
Name of the Scheme Budget
Provision
Expenditure incurred
Development of Market Yards 11.98 8.36
Construction of Departmental Purchase Centers 44.00 30.71
Construction of Retting Tank 5.00 2.18
Demonstration of Retting Technology 2.00 1.60
Developments of Jute Ribboners 1.60 1.60
Total 64.58 44.45
MINI MISSIONIV (MM-IV)
This Mini Mission will be coordinated and implemented by the Ministry of Textiles.This Mini Mission will focus on modernization of jute industry either through replacement ofold machinery with new ones and establishing green field modernized mills. It is proposed tointroduce a scheme titled Acquisition of Modern and Efficient Machinery & Plants with a
proposed allocation of Rs.100 crore. This scheme will replace the existing scheme of the JuteManufactures Development Council of Modernization of Jute Industry. The subsidycomponent will be 20% of identified machinery and plants subject to the pecuniary limit ofRs.75 Lakh in case of existing mills, which may be enhanced to Rs.1 crore for the North EastStates and Rs.1 crore for altogether new mills. Mini Mission-IV will also include training andupgradation of skills of the workers engaged in the jute sector. It will lay emphasis on the needto transform the traditional product portfolio of the Jute Industry to include jute diversified
products as these incorporate not only value addition, but are also intended to boost exportsand emphasize the multiple uses for which jute can be employed. This will include the
promotion of technical textiles made from jute for agriculture, road building etc., and the use ofjute composites in industry. Altogether, Mini Mission-IV comprises nine schemes with totalproposed outlay of Rs.260.00 crore during the entire Mission period from 2006-07 to 2010-2011.
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Progress as on 31.12.2011
The physical progress of all the schemes under MM IV since inception till 31stDecember 2011 was as follows:
Sustainable Human Resource Development in Jute Mill Sector (Scheme 6.1)
Since inception, training has been imparted to 24131 Master trainers, Supervisors,Maintenance Workers and other Workers in 39 jute mills. Institute of Jute Technologyhas developed 33 DVDs on 21 audio-visual modules on different process of productionas training aid for sustainable training in the jute mills.
Development of Jute Mill Machinery (Scheme No.6.2)
A state-of-art Centre for Jute Machinery Development (CJMD) under PPP mode hasbeen established. 5 identified machines viz. Spreader, Carding, Drawing, Spinning and
Shuttleless looms for the jute industry are being developed in the CJMD.
Out of total 5 (Five) types of machines which were to be developed, CJMD havedeveloped 4(Four) prototypes and are under trial run in mill and workshop. These fourmachines are:(a) Composite Cards with Auto-leveler and Draw Heads(b) Intersecting Chain-gill Drawing Frame. (Intermediate)(c) Rotating Spindle Spinning Frame [Type-II (8.5 -14 Ibs)](d) S4 Type Loom (weaving)Shuttle-Less.
The design and drawing of spreader machines is under progress. The fabrication job of
intersecting Chain-gill Finisher Drawing Frame and development activities of RingSpinning Frame are also under progress.
There were some deviation made by CJMD from the Technical Bid as regardspecifications and technological concept in developing (1) Carding and (2) Spinningmachine type II in course of the R&D process. A Technical Team representing theTechnical Committee members of the scheme, IJMA & non-IJMA mills, IJIRA andJCs office physically scrutinised / analysed the deviation. The concept of composite
card (in place of integrated card) was appreciated by the members and they found thedevelopment in the right direction. This development however, required somemodifications and adjustments, through which, the desired results are expected to beattained. The concept of Rotating Spindles Spinning Frames in place of ring spinningframes was also found to be a development aimed towards achieving the desired levelof efficiency and productivity. It was felt by the team that performance of thesemachines would be suitable in actual operation in a cost effective manner withimproved productivity and quality fulfilling the ultimate objective as targeted.
Two machines viz: Rotating Spindle Spinning Frame and S-4 Type Modern Rapierloom has been developed, which are under the process of commercialisation.
Development of Electronic and Microprocessor based integrated Instrumentation for
Jute Grading System by NIRJAFT under ISMDCP.
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Productivity Improvement & TQM Facilitation (Scheme No.6.3)
The scheme to improve productivity and to establish Total Quality Management (TQM)facilities in the jute industry has been provided under Mini Mission IV of the JTMwith NJB as facilitating agency of the scheme. The identified areas of operation of
Productivity Improvement & TQM Facilitation are:(i) Total Quality Management,(ii) Energy Management(iii) Waste Management(iv) Maintenance Management(v) Work Study & Ergonomics.To facilitate these studies, NJB has engaged 5 National level reputed Agencies /Institutions to conduct the studies under the scheme and implement recommendationsin selected 6 jute mills. After completion of diagnostic studies, correctiveimplementation plans have been finalized in consultation with the respective jute mills.Implementation of the corrective measures has started in the 5 Jute Mills. The study in
the 6th Mill has since commenced in July 2011.
In addition, TQM studies have been completed in 6 mills in Kerala producing andexporting floor covering.
Modernisation and Upgradation of Technology in Jute Mills Capital Subsidy
(Scheme No.6.4):
The upper limit of the subsidy has been raised to Rs. 350 lakhs per mill for theexisting units and Rs.400 lakhs for mills at North Eastern States and for settingup new units.
Since inception (1st March, 2007), 219 claims were settled and subsidy ofRs.56.45 crore has been released against investment for modernization ofRs.282.05 crore all over India till 31st December 2011. [Own source: 150claims, subsidy Rs.25.06 crore investments Rs.125.03 crore. Bank Finance: 69
claims, subsidy Rs.31.39 crore investment Rs.157.02 crore].
75.93% of the investments have been for Mill-side machinery meant forpreparatory to spinning and winding processes. 17.74% of the investments havebeen for weaving to finishing processes of manufacturing. Remaining 6.33%was for Material handling and other miscellaneous machinery.
83 units have so far availed the benefits under the scheme, which included 63
composite jute mills, 16 yarn & twine mills, 2 diversified jute product units and2 weaving unit.
State-wise West Bengal 60 units, Andhra Pradesh 10 units, Bihar 2 units,Haryana 2 units, Chattisgarh 1 unit, Kerala 1 unit, Orissa 2 units and NER(Assam) 5 units availed of the benefits.
43 vendors for supply of core jute machinery are enlisted under the scheme.
Design and Development of JDPs (Scheme No.7.1)
Total 22 market driven R&D Studies on different aspects have been awarded to thefollowing institutions: Indian Institute of Technology, Kharagpur7 studies South India Textile Research Association, Coimbatore2 studies
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National Institute of Research on Jute and Allied Fibre Technology, Kolkata1study.
Indian Jute Industries Research Association, Kolkata7 studies Institute of Jute Technology, Kolkata4 studies Northern India Textiles Research Association, Ghaziabad1 study
The studies range between 36-60 months each except the last one, which is for 9months. NJB monitors the progress and marketability of the products and process underdevelopment by organizing seminars / workshops / meetings regularly with thestakeholders.
In addition, NJB engaged 11 agencies (designers, institutes, entrepreneurs) forundertaking need based design development projects of jute diversified products. 5design development workshops were conducted in 4 States.
Helping NGOs and Women Self Help Groups (WSHGs) for developing jute
diversified products (Scheme No.7.2):
53 NGOs have been identified 406 Clusters developed 1400 Women Self Help Groups in 101 districts of 18 States imparted training to
17710 artisans on production of JDPs 586 Nos. machines were distributed to 263 Women Self Help Groups.
Scheme for Promotion of Jute Diversification (Scheme No.7.3)
36 Jute Service Centres have been established
35 Jute Raw Material Banks have been established
1643 training programmes were organized by Jute Service Centre benefiting31249 artisans.
593 JDP-SHG units were setup.
142 machines were distributed to 69 WSHGs developed units.
Setting up of Jute Park (Scheme No.7.5)
9 Jute Park proposals (6 in WB, 1 in Bihar & 2 in NER) are being promoted.Constructions in 6 Jute parks have commenced (4 in WB, 1 in Bihar & 1 in NER).
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JTM MINI-MISSION IVFINANCIAL PROGRESS UPTO 31.12.2011
Sl.
No.
SCHEMES MISSION
TARGET
PERFORMANCE TILL 31.12.2011
Approved
Fund for Total
Mission Period
2007-08 2008-09 2009-10 2010-11 2011-12
(upto
31.12.11)
Cumulative
TOTAL
(31.12.11)
1 2 3 4 5 6 7 8 9=(4+5+6+7+8)
6 SCHEMES FOR MODERNISATION OF ORGANISED JUTE MILLS
6.1 Training of Workers &Supervisors
4.50 2.00 0.77 0.50 1.00 0.23 4.50
6.2 MachineryDevelopment
28.00 0.08 5.75 7.62 5.38 1.39 20.22
6.3 Productivity
Improvement & TQMFacilitation
6.00 0.04 0.12 1.00 2.95 0.39 4.50
6.4 Acquisition ofMachinery and Plant(subsidy)
80.00 5.86 7.46 11.24 21.75 10.51 56.82
TOTAL (6) 118.50 7.98 14.10 20.36 31.08 12.52 86.04
7 SCHEMES FOR PROMOTION OF JUTE DIVERSIFICATION
7.1 Design andDevelopment of JDP
14.00 2.20 2.56 1.52 1.98 1.49 9.75
7.2 For helping the NGOsand Women Self HelpGroups (WSHGs) fordeveloping JDPs
17.00 0.38 1.52 1.79 3.15 3.10 9.94
7.3 Scheme for Promotionof Jute Diversification: 23.52 1.97 5.21 4.91 4.79 2.83 19.71
7.4 Scheme forCommercialisation ofTechnology
1.00 0.00 0.00 0.00 0.00 0.00 0.00
7.5 Scheme for setting upJute Parks for theDiversified sector
60.00 0.06 0.83 1.50 13.31 3.94 19.64
TOTAL (7) 115.52 4.61 10.12 9.72 23.23 11.36 59.04
Total Mini Mission-IV
(Schemes)234.02 12.59 24.22 30.08 54.31 23.88 145.08
Administrative /
Monitoring Expenses 0.35 0.97 1.58 2.03 1.17 6.10
Total Mini
Mission-IV234.02 12.94 25.19 31.66 56.34 25.05 151.18
Status of Implementation of Schemes under the Non-Plan Funding
(g) Subsidy Scheme for Distribution of Certified Seeds
With intensive interaction had with the farmers in the matter of distribution of certified
seeds during 2009-10, total 4375.80 quintals of certified seeds were distributed at asubsidy of Rs.40/- per KG under the scheme. During the year 2010-11, the target was
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fixed at 13,600 quintals against similar subsidy. Out of the target for distribution fixed,till date 6,600 quintals of certified seeds were distributed at a subsidy of Rs.40/- per KGunder the scheme The network of the Jute Corporation of India is being utilized forimplementation of the scheme.
(h) Scheme for Jute Farmers Information and Testing Centres
Identification and setting up of 50 Farmers Information Centres, imparting training to
80 groups of 50 farmers each, organization of 2 Farmers School to encourage andeducate the latest technological advancements in seed production and farming practiceshave been planned in 2010-11 under non-plan for promoting raw jute supply stability.
(i) Scheme for Support Supply Chain and Bulk Supply of JDPs
Financial assistance is extended to jute entrepreneurs to ensure supply chain and bulksupply of JDPs for selective and mass consumptions. This assistance is aimed at
meeting increasing demand for jute shopping bags and other JDPs arising mainly dueto restrictions on the use of plastic, and thereby supporting the cause of health ofenvironment. Till date, 53 applications for opening of retail outlets have been receivedfrom 31 jute entrepreneurs. NJB has accorded approval to opening of 10 retail outlets atBangalore, Chennai, Agra, Bhubaneshwar and Kolkata.
(j) Fast Track Schemes for Export Market Development of JDPs.
Marketing assistance is extended to the exporters for participation in differentpromotional events of the National Jute board under Fast Track Export MarketDevelopment scheme. During 2010-11, NJB received 180 EMDA applications from 58exporters, settled 99 applications and released Rs.140.64 lakhs to 44 exporters for their
participation in 42 events. During 2011-12, NJB has received 100 applications from 64exporters for participation in 36 events and disbursed (till 30th September, 2011)Rs.42.85 lakh to 28 exporters against 35 applications for participation in 10 events.
(k) Schemes for Workers Welfare in Jute Sector.
National Jute Board [NJB] provides assistance for the welfare of workers in jute-producing units both in jute mills and in small units producing JDPs. NJB utilise non-Plan funds to improve :-
(a) the sanitation, health facilities and working conditions in the mill sector and(b)provide incentives to the small and medium JDP units for compliance with
prescribed working conditions.
This Workers Welfare Scheme therefore has 2 broad sub-schemes, one for the millsand one for the small sector. In both cases, proposals from mills or JDP units are
prepared by the management in consultation with the accredited unions.
Component IMill SectorSanitation facilitiesA Scheme to provide hygienic sanitary facilities for mill workers
and their families, first in the mill quarters and in the second stage in the working areas.Sanitary facilities include designed sanitary blocks with toilet facilities for men andwomen, wash basins, sewage, etc. In order to speed up the process of construction are
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allotted to third-party tie-up with M/s Sulabh International or such other reputedorganizations especially those agencies which may have a government dispensationexempting them from participation in tender. The concerned mill first incurs theexpenditure and National Jute Board thereafter reimburse 90% of the costs subject to amaximum reimbursement of Rs. 20.00 lakh, subject to submission of claim along with
accounts and vouchers and physical verification of the facility.
Component IIJDP / small & medium sectorIncentive for Social AuditAll authentic international, multi-national and national bigstores require, as per respective country-law, audit certificate before or for placingorders on the manufacturers of lifestyle jute products which are manufactured by theMSEs in the Informal Sector of Jute. Hence export oriented MSEs in the InformalSector of jute shall conduct such Social Audits. Social audit is undertaken annually bythe Firms like SGS, SEDEX, INTERTEK, STR LABs and the ISO certifying firmsmainly under the following major heads:-
1. Child Labour.
2. Minimum Wages.3. Social SecurityESI/P.F./Gratuity.4. Working Hours.5. Occupational Safety & Health Care.6. Waste Disposal.7. Non-discrimination.8. Freedom of negotiation and formation of group or union.
NJB provides 50% of the cost of annual compliance audit for each registered unitsubject to a maximum of Rs. 1,00,000/- per unit per year.
(Data Source: Jute Section, Updated on 05-03-2012)
