President of Ahmedabad Powerloom Owners Association, Navinbhai K Patel, said that the State Government was neglecting these industries, which had abundant employment opportunities. Patel further said that the industry was facing several problems. The association dealers have threatened to launch a stir, if the State Government did not change its attitude.

He said that in the neighbouring State of Maharashtra, the Government was encouraging the Powerloom Sector. He said that there the powerloom industry were supposed to pay Rs 125 since April 1, 1996, and later the rates were increased to Rs 175 from April 1, 1998.

But as compared to this, the industry in the State was paying a hefty bill of Rs 900 to Rs 1,100. He said that as a result of this, each industry was forced to pay a excess bill of about 10,000 annually, as compared to that of Maharashtra. This is oneamong the various reasons why the industries were shifting their base.

He said the cost per metre of cloth was about Rs 0.70 more in the State, as compared to that in Maharashtra. He said the industries in the State were not in any position to withstand competition with the industries of Maharashtra. He said that with the production cost less in Maharashtra, several metres of cloth manufactured in Maharashtra were being pushed into Gujarat. He said that in the State about 70 per cent of the powerloom industries were closed, while in Maharashtra more than 60 per cent of the industries were open and the number was slowly increasing.