The Hindu Business Line : Industries body seeks jute park in State

Visakhapatnam, March 19 The Federation of Andhra Pradesh Industries (FAPI) has urged the Union Government and the State Government to establish a jute park in Andhra Pradesh to develop jute diversified products.

In a statement issued here on Wednesday, the FAPI President and the Managing Director of Swarnandhra Jute Mill in Srikakulam district, Mr B.V. Rama Rao, said that the Jute Manufacturers Development Council (JMDC) was organising a seminar on energy management in jute industry here on Thursday.

On the occasion, he appealed to the Union Government and the State Government to allocate 250 acres of land for setting up the park.

He said, “There are nine composite mills and 18 jute twine units in Andhra Pradesh with a total production of 840 tonnes per day, employing nearly 50,000 people. There is a tremendous scope for setting up units to produce jute diversified products in rural areas. The Government should consider the demand sympathetically and concede it.”

He said the Chief Minister, Dr Y.S. Rajasekhara Reddy, had promised to allocate land for the proposed jute park in the State, but no follow-up action had been taken till now. He wanted the Chief Minister to expedite the matter.

Labour intensive

He said the labour-intensive jute units in the State and elsewhere were often plagued with labour unrest, often fomented by outside unions.

Therefore, he said, the labour laws should be suitably modified as applicable to the jute industry to address the problem.

Mr Rama Rao urged the Chief Minister to extend the “pavala vaddi” (loans at the rate of 4 per cent) scheme to jute entrepreneurs and also to reduce the power tariff for the units.

He said the jute reservation order, issued by the Union Government, was not being implemented and the Government Departments were not buying jute products and they were encouraging plastic, though it was harmful to the environment.

He sought the banks and the financial institutions to lend liberally to jute units.

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