ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Subsidy from the Exchequer

Subsidy from the Exchequer Hansavivek SOUTH INDIA VISCOSE is taking steps to implement its staple fibre expansion scheme (including production of polynosic) from 10 to 50 tonnes per day. A letter of intent' has been obtained, and the cost, economics, and other technical details, are being examined both by the collaborators and the company's technical staff. Production of rayon grade pulp reached rated capacity, of 60 tonnes per day, in July last year. At present, movement of surplus pulp is slow on account of liberal issue of import licences to other indigenous rayon spinners, the only consumers of the company's product. Representations have been made to Government to restrict import of pulp. Tamil Nadu Government has been requested to continue the price and conditions for sale of pulp wood of the original agreement. Also, the company has asked for allotment of additional area of forests in view of its reaching rated capacity in pulp production. Government of India has approved the collaborators' claim of about Rs 96 lakhs following the increase in price of pulp plant machinery supplied by them. Their claim towards interest on the escalation amount is still pending with Government. The company's claim for about Rs 11 lakhs with STC, reimbursement of loss and interest under the export promotion scheme, has not been accepted so far. The Textiles Committee, Bombay, had demanded Rs 78,433 as fees payable on monthly production of rayon yarn and staple fibre from March 1966 to March 1967. The company did not accept the claim, as no service was rendered by the Committee to the company. Revenue recovery proceedings were taken against the company for recovering the amount. A writ petition was filed in the Madras High Court, challenging the validity of the levy, which was dismissed. The matter is being taken on further appeal.

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