Diwali bonanza for the textile industry seems to be pouring in – first with the announcement of the extension of 2 per cent export benefit under Merchandise Export from India Scheme (MEIS), followed by the National Green Tribunal’s order, lifting the ban on the operation of textile units in Rajasthan.

Heaving a sigh of relief over the NGT’s order dated November 4, 2015 and terming the re-opening of the dyeing units in Rajasthan as “a Diwali bonanza for textile industry”, M Senthilkumar, Chairman of the Southern India Mills’ Association, said the NGT has specified certain conditions.

These include installation of primary treatment plant, payment of security deposit ranging from ₹2 lakhs to ₹5 lakhs per unit, connecting all the dyeing units to the CETP, fixing of meter in the bore well and flow meter for the water pipeline, and disposing the sledge in specified areas. It has also directed Rajasthan Pollution Control Board to renew the consent immediately after fulfilling the said conditions.

“As a majority of the dyeing units are prepared to reopen the units, the problems are expected to come to an end very soon. And this has started to give positive signal and improvement in the yarn market. There is a sudden spurt in demand for yarn and the prices have also started looking up, improving by ₹4 to ₹6 a kg. This will help improve the capacity utilisation levels in the mill sector.

“Export demand for cotton yarn has also picked up particularly from countries like China and Vietnam since July. Export data reveals that the total cotton yarn export between January and August this year increased by 11.89 per cent when compared to the same period of the earlier year. “The mood is upbeat and hopefully after Diwali, the prospects for the textile industry should look good,” he said.

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