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Friday, December 19 1997

Walk-out in Assembly over cotton prices, sick NTC mills

Moiz Mannan Haque

NAGPUR, Dec 18: The Maharashtra Legislative Assembly today saw walk-outs in quick succession from the Congress and the remaining Opposition over the issues of cotton prices and sick textile mills respectively during question hour. Members of Left parties, Janata Dal, PWP and some Independents strongly raised the demand that the State government should take over sick mills currently under the National Textiles Corporation (NTC).

The issue came up through a query raised by Madhukarrao Pichad and Prasad Tanpure (Cong), Minakshi Patil (PWP), Sharad Patil and Sambhaji Pawar (Janata Dal) and others. They wanted to know the fate of the mill workers demand about the State government taking over the mills.

Cooperation Minister Jaiprakash Mundhada categorically informed the House that the State government had decided against taking over the mills. There are 35 NTC mills in question, employing nearly 38,000 people, he said.

He pointed out that Union Textiles Minister Jalappa had urged the Maharashtra Government to take over the mills. The problem before the State government is that of the huge financial burden involved. If the mills were to be taken over the government would have to spend Rs 1,400 crore in the first year itself and Rs 500 crore each year for the following three years, he said.

Upon supplementaries from Bashir Patel (Samajwadi Party), Bala Nandgaonkar (Shiv Sena), Sambhaji Pawar (JD), Narsaiya Adam (CPM), Prabha Rau (Cong) and others, the Minister further informed that the total land holdings of these mills come to around 280 hectares valued at Rs 2,000 crore. Estimates of their other assets were not available with him.

The members vociferously demanded to know what the Shivshahi Government proposes to do about the 38,000 workers who would be rendered jobless. After all, the alliance government had promised employment to 27 lakh people, they reminded the ruling benches.

When the Minister stuck to his refusal to concede the demands, Narsaiya Adam, Bashir Patel, Faiyaz Ahmed and other members of the PDF group of parties raised slogans and entered the Well of the House.

In the meantime, the Speaker had moved on to a question about the monopoly cotton purchase scheme raised by Manikrao Thakre (Cong), Nihal Ahmed (JD), Bala Nandgaonkar (Sena) and others. The question was regarding the gradation of cotton stocks at the time of procurement, but the Congressmen straightaway raised the demand of a hike in the purchase price to Rs 2,500.When the Minister failed to respond positively to the demand, the Congressmen rose in their seats and began to raise slogans. They then, joined the other Opposition members in the Well and subsequently the entire Opposition staged a walk-out.

In a written reply to a question raised by Prasad Tanpure (Cong) and others, Mundhada informed that the Cotton Marketing Federation, which purchases stocks from the farmers, incurred a loss of Rs 522.90 crore during the 1995-96 season. The reasons he cited for these losses included: the difference between the prices paid to farmers and those prevailing in the market, the payment of unusually large sums as interest on loans and as guarantee money because of a record procurement in the 1995-96 season, increase in processing costs, dull markets, and refusal of the Central Government to allow substantial exports.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.

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