Date:28/11/2008 URL: http://www.thehindu.com/2008/11/28/stories/2008112853510300.htm

Other States - Puducherry

AFT privatisation not ruled out: Vaithilingam

Staff Reporter

“Income generated was not sufficient even to pay the staff salary”

AFT has 2,342 workers, 400 clerical staff
Panel to be appointed to look into affairs of Swadeshee-Bharathee Textile Mill Limited

— Photo: T.Singaravelou

FOR FURTHER ACTION: Chief Minister Vaithilingam receiving the report on AFT revamping in Puducherry on Thursday.

PUDUCHERRY: The government will consider privatising the Anglo-French Textile if there is “a viable and good offer” from private agencies, Chief Minister V. Vaithilingam has said.

“ Even if we have to take a decision on that line, the interest of the workers will be protected at all costs,” he told reporters after receiving a copy of the report on AFT revamp. The scope of the two-member committee was to look into the demand of employees for dearness allowance as given by the Central government, rearranging work assignment and ways to mobilise resource, he said.

Stating that the financial position of the mill was bleak, he said since the government took over management of the AFT, it had accumulated loss to the tune of Rs. 381 crore. Last year alone, the government provided a grant of Rs. 22 crore but it had only done business to the tune Rs. 45 crore. The income generated was not sufficient even to pay the staff salary. The mill had a total strength of 2,342 workers and another 400 clerical staff, he said.

On the reasons for its poor performance, Mr. Vaithilingam said that there were several factors including shortage of raw materials, poor marketing of the products, quality of items produced and work culture. “We will take all steps to improve the condition of the mill and to bring back its glory,” he said.

On the demand made by a section of workers to merge the Swadeshee-Bharathee Textile Mill Limited with the AFT, he said the proposition was not viable. The requirement of the AFT was cotton yarn but the Swadeshee-Bharathee produced blended yarn. If the AFT wanted to use the yarn produced by the latter, it had to be converted to cotton which was not cost effective, he said.

The financial position of the Swadeshee-Bharathee too was not healthy and the government would appoint a committee to look into its affairs, Mr. Vaithilingam said.

Home Minister E. Valsaraj, who also holds Industries portfolio, said that the government would consider seeking funds from the Union government to improve the functioning of the mills.