The Hindu Business Line : Bonanza for khadi, handloom sectors on Rly procurement?

THE khadi and handloom sectors could have landed themselves a Rs 200 crore - Rs 300 crore business opportunity following the Railway Minister, Mr Laloo Prasad Yadav's announcement today that the Railways would source upholstery and linen from the two sectors.

According to estimates, the Railways' annual furnishings' procurement bill is to the tune of around Rs 300 crore.

Responding to the announcement, a senior Khadi and Village Industries Commission (KVIC) official said the use of khadi would be a "significant step" in generating rural employment and popularising traditional Indian materials among rail users. According to industry sources, the Railways had sent feelers about wanting to use khadi material for upholstery, which would first have to be made fire resistant by chemical processing to meet the safety standards.

The Railways is currently sourcing textiles from several private companies for bedding, upholstery and other furnishings to be used on trains and railway premises, with procurement taking place across all major zones through the tender route. The Railways is, however, not likely to go in for a blanket replacement of all linen materials used now because khadi is not available on such a large scale now, industry experts said. Also, a complete makeover at one go could put additional financial burden on the Railways, they said.

Textile industry players, who are supplying material to the Railways, said it would not be possible for the handloom sector or KVIC to produce upholstery that would match the quality of the material being used currently, in terms of its ability to withstand stress, dust resistance and water repellent properties.

According to the KSA Technopak Chairman, Mr Arvind Singhal, the business opportunity stemming from the decision for the khadi and handloom sector is "more symbolic" in nature and would not be quite significant considering the overall size of the Rs 65,000 crore - Rs 70,000 crore domestic textile business. He said it would be tough for khadi upholstery and linen to match the safety and utilitarian value of the materials being used by the Railways.

The National Handloom Development Corporation Managing Director, Mr V.K. Goel, when contacted, said the move would have a "very positive" impact on the sector. He said the corporation was still studying the impact of the announcement.

Stores worth Rs 477 crore was procured by the Railways in 2002-03 from the small-scale sector and khadi village industries. Public sector undertakings contributed 26 per cent of the supplies and other industries the remaining 74 per cent.

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