Andhra Pradesh to get new Jute park

Kolkata: Jute millers from Andhra Pradesh would like to build a jute park using jute technology mission funds and have approached the Central jute commissioner with the plan.

The plan was presented by B V Ramarao, managing director of Swarnadhara Jute Mills Ltd, and president of the Federation of Andhra Pradesh Industries, to Binod Kispotta, jute commissioner.

The proposed park would need over 200 acres and cost of Rs 70 crore, said Ramarao.

Briefing the media about some of the problems faced by the jute sector, Ramarao said a charter of demands was going to the Prime Minister's office, seeking subsidised power and loans for small and medium industries.

'The present policies of the UPA government are not conducive to the industries, particularly SMEs,' said Ramarao. The federation will seek power for SMEs at the rate of Rs 2 per unit, against Rs 3.40 at present.

For short term loans, it will demand 4 per cent interest rate for loans below Rs 10 crore, against 12.5 per cent or so now.

Citing some of the problems faced by the jute sector in Andhra Pradesh, he said the state was facing a huge labour crunch, as mills required about 5,000 labourers over and above the 5,000 employed in 17 jute mills in the state.

Andhra accounted for about 15 per cent of the country's jute production. According to Ramarao, the reason for the shortage of manpower in the jute industry was shift of labourers towards the construction sector and rural employment opportunities under the National Rural Employment Guarantee Programme.