Cooperative textile mills will be allowed to sell excess land to overcome crisis

YarnsandFibers News Bureau 2015-08-28 11:55:00 – Mumbai

Around 50 co-operative textile mills in Maharashtra are sick, closed or under liquidation process with losses in the range of Rs 10-40 crore each. The government's share in their capital ranges from 80% to 45%.

In order to save these mills from losses, Maharashtra government may soon allow the mills in the state to sell off excess land in their possession. These mills were never given permission to sell the extra land, despite repeated requests to this effect. The government has not yet decided on whether there should be a cap on saleable land.

The Suresh Halwankar committee had suggested earlier the closure of all ailing mills to cut losses to which the Congress and NCP reproached the suggestion a "deliberate attempt" to devastate the cooperative sector.

The textile minister Chandrakant Dada Patil has said that they expect that this decision would help these mills to revive their business as the government has invested big money in them and if it does not help, then the government would chip in.

Industry experts termed the plan as "useless" and "impractical" because most sick mills are in smaller cities and towns and no mill has that much excess land which could get them Rs 30-40 crore.

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