The world famous carpet industry of Bhadoi and Mirzapur, facing global recession and the protest against child labour, are on the verge of closure with the Uttar Pradesh government making mandatory to provide Provident Fund(PF) benefits to all the labourers engaged in the industry.
More than two dozen small carpet units in the state have already closed down on the directive of the state government while others are also heading for the same.
Carpet Export Promotion Council(CEPC) president Sidhnath Singh said here today the order of the state government to give PF benefits to the labourers was unrealistic. ''How can a company provide PF benefits to all the members of a family, who work as a group to weave the carpet,'' he added.
''Owing to this new directive more than two dozen carpet units have been closed down after they were served show cause notices by the state government,'' he said.
Though these units have moved the court against the government's directive but it would take time for the judiciary to give its ruling which forced these units to shut down.
One of the closed down carpet units' owner Srikanth Pandey said they would prefer to shut down their industries rather than run them on losses.
The owners of the carpet units had already demanded soft loans and other benefits from the Central and the state governments to revive the ailing industry.