Disappointed Panipat textile entrepreneurs threaten shifting to adjoining states

Large number of entrepreneurs of famous textile industry hub Panipat disappointed by the recent decision by Air Quality Management Commission to run industry only on Piped Natural Gas (PNG) instead of coal in National Capital Region (NCR) declared industry based on use of coal will not be permitted to function in the area and directed to shift working of their units from use of coal to PNG by September 30, 2022 as such several textile manufacturing units and dyeing house in Panipat has decided to shift their industrial units to adjoining states U.P and Punjab having no restrictions over use of coal in industry. They said, running industry on PNG will increase production cost enabling them not to compete prices of textile products with manufacturers in Gujarat and Punjab.

According to Panipat exporters , there is already tough price war being faced by them with textile manufacturers in Gujarat and Ludhiana at present not only in domestic markets in the country as well as in export markets compelling them to work on nominal margin and in case of further rise in production cost they will start losing business besides margins. According to textile goods manufacturers, their industry is dependent on dyeing units and in case dyeing industry start shifting to other states will adversely affect Panipat textile manufacturing units.

According to Maneesh Garg of Young Entrepreneurs Society Panipat, it is not possible to shift industry from use of coal to PNG in such a short notice since timely deliveries is a challenge  before Indian exporters. He said, exporters have already secured orders from foreign buyers on annual supply basis and they may suffer heavy financial  loss as a result of such a short notice, moreover their payments will held up. The manufacturers accused government for making sudden decisions like ban on use of coal in industry, use of diesel generating sets and declaring lock down all of sudden which harm industry due to non-availability of raw material and Panipat textile industry suffered severe economic crisis due to non-availability of yarn last year since Panipat textile industry failed to fulfil supply commitments in domestic and export orders.

Bhim Rana, President of Panipat Dyers Association said, the entrepreneurs has decided to shift their units to Kairana and Shamli in Western U.P which are quite near to Panipat from where hundreds of workers  are employed at Panipat textile and dyeing industry. There are large numbers of small scale industry units at Kurad manufacturing Mink & Polar blankets and open spinning mills as such shifting dyeing units from Panipat to U.P will be a good decision where they will be free from restrictions by the government. Rana said, moreover U.P has now become crime-free state as compared to Haryana.