Around 130 spinning mills have been closed in Punjab due to energy shortage. There are 12 million spindles installed across the country, out of which there are 8.5 million spindles in Punjab. Closing of 8.5 million spindles in Punjab means a closure of 3655000 spindles in total.
Each spinning mill, on an average consist of 28,000 spindles, which means closure of 130 spinning mills until the electricity and gas supply is ensured by the government. It may be noted that the SNGPL has been suspending gas supply to the textile industry since September 2010. It is for the first time that the textile industry is facing gas shortage even during the summer season. Presently, the SNGPL is supplying four days a week gas to the textile industry with a closure of three days.
Similarly, those running on Pepco feeders are facing loadshedding of four to five hours a day besides forced closures. Therefore, Aptma leadership has decided to close down 43 percent of its capacity, which means 130 spinning units in total until the government ensures uninterrupted energy supply. Besides energy shortage, the market slow down is being described another factor behind the move. According to the industry circles, a closure of 130 spinning mills means a reduction in yarn production to 103200 tones a month from actual capacity of 240000 tones a month.
This situation may put the ancillary industry into a troublesome situation in case the yarn availability becomes scarce in the market in near future. It would also hit the dream of achieving $14 billion export target. The textile industry has so far achieved $10 billion exports, short of $4 billion exports in next three months.
Achievement of $14 billion export is not possible without over a billion dollar exports for each month during May, June and July 2011, they added. Similarly, the prospective investors in the textile industry have also halted their investment plans due to crisis. There is a general perception that the joblessness would increase due to the present situation the textile industry is facing.