SURAT TEXTILE NATIONAL
SURAT, GUJARAT, INDIA
By IFAB MEDIA - NEWS BUREAU - May 23, 2024 | 484 3 minutes read
There is some good news for the textile mills in Surat, the country’s biggest man-made fibre hub (MMF). After years of grappling with private coal monopolies during monsoon, the state government has taken a significant step to break the trend. The Gujarat Mineral Development Corporation (GMDC) will be supplying coal to Textile mills in Surat from June to August, offering much-needed relief during the rainy season.
“This is an important decision to support the struggling dyeing and processing industry,” said Jitendra Vakharia, President of the South Gujarat Textile Processors Association. “The monsoon season typically sees a rise in imported coal prices due to disruptions, and mill owners often face issues with the quality of the fuel.”
Previously, private dealers held a monopoly on imported coal during the monsoon, leading to price hikes and concerns about quality. However, GMDC’s intervention will provide Surat’s mills with a reliable source of coal throughout the monsoon months.
According to Vakharia, GMDC officials have assured them of sufficient coal supply from their Tadkeshwar Mines near Surat. The company has stockpiled 3 lakh tonnes of good quality coal, with a lower sulfur content of half a percent compared to the 3-4% typically found in imported options. Additionally, GMDC has guaranteed that the coal will be free of stones and soil, addressing another major complaint faced by mill owners.
While the assured supply and improved quality are welcome changes, Vakharia highlighted additional requests made to GMDC. “We have proposed a reduction in coal prices to further ease the burden on the industry,” he said. “Considering the current state of the mills, we have also requested the transporters to maintain reasonable transportation charges.”
Previously, mill owners faced issues with imported coal being mixed with water, leading to increased fuel costs due to lower calorific value. GMDC’s intervention with its higher quality coal is expected to address this concern as well.
“The move by the state government and GMDC to provide a reliable coal source during the monsoon season is a positive step for Surat’s textile industry” said Vakharia.