It is believed that the association is contemplating action against the non-paying members as the arrears have mounted to unprecedented levels. Major defaulters include JK Synthetics Ltd, Modern Petrofils and Shree Synthetics, sources said.

It is a known fact that polyester makers are finding the going tough due to depression in the the petrochemical industry, but non-payment of dues to the association is totally unjustified as it has been effectively echoing the cause of the fibre industry, sources close to association said.

While JK Synthetics and Shree Synthetics are believed to be defaulters, Baroda Rayon Corporation, Raymond Synthetics and Nirlon Ltd have made only part-payment for the year.

The members have to pay a basic subscription fee of Rs 1 lakh irrespective ofthe size of the company and a defict subscription which is calculated on the basis of the turnover of filament yarns.

The basic subscription fees was Rs 75,000 till last year and was hiked to Rs 100,000 lakh from this year onwards after taking into consideration the increasing cases of defaulters, sources said. The association has 19 members in its fold with Akai Impex and Nova Petrochemicals severing links long ago.

Also, NRC Ltd has moved out of the association this year as it feels that Asfi represents the intersts of only fibre and yarn manufacturers and not nylon tyre cord players.

Asfi, it is learnt, has formed three sub-commities to prepare the pre-budget memorandum for the year which will be ready shortly, sources said.

Although performance of companies is dismal, the demand for polyester products is surging ahead even in the backdrop of recession. During 1997-98, while polyester staple fibre (PSF) production grew by 34 per cent, production of polyester filament yarn also rose 30 percent.

The industry is favourably placed in terms of raw materials also. The domestic production of PTA has gone up 153 per cent during the current year.